Does the Cream franchise agreement require franchisees to conduct their own independent investigation before selecting a site?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You further acknowledge that you have been advised to conduct your own independent investigation before selecting any site for our approval. We are not responsible if the site you select for your Shop, including a site we recommend or approve, fails to meet your expectations.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream's franchise agreement emphasizes the importance of franchisees conducting their own independent investigations before selecting a site. While Cream may offer recommendations or approve sites, this is not a guarantee of suitability or success. Cream's approval indicates only that the site meets their minimum criteria, which are established for their own purposes.
Cream explicitly advises franchisees to conduct their own due diligence. The agreement states that franchisees are not to rely solely on Cream's site approval for their benefit. This is a standard practice in franchising, as the franchisee typically bears the financial risk associated with the location's performance.
Cream is not responsible if the chosen site, even one that they recommended or approved, fails to meet the franchisee's expectations. This underscores the importance of the franchisee's independent investigation. By acknowledging this, prospective Cream franchisees take on the responsibility of ensuring the site's suitability for their business goals.