Does the Cream franchise agreement state that the success or failure of the franchise depends primarily on the franchisee's efforts?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. | INITIAL: |
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Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the Cream franchise agreement includes an acknowledgement from the franchisee that their success depends primarily on their own efforts. The agreement states that purchasing a franchise is not a guarantee of success and is subject to many variables. These variables include the franchisee's skills and abilities, the time devoted to the business, and other economic and business factors.
Cream emphasizes that the success or failure of the franchise business hinges on the franchisee's efforts rather than the franchisor's. This acknowledgement is part of a broader statement where the franchisee confirms they are aware of the business risks involved and are willing to undertake them.
This clause is a standard inclusion in franchise agreements, intended to manage expectations and highlight the franchisee's responsibility in the business's performance. It also protects Cream from potential claims that the franchisor guaranteed success. Prospective franchisees should carefully consider this acknowledgement and realistically assess their capabilities and commitment before investing in a Cream franchise.