For a Cream franchise, does applicable law require franchisees to pay trainees' wages during training?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Initial Training Expenses.
We do not charge a fee for our Initial Training Program (as defined in Item 11) for up to three people for your first Shop, but, you are responsible for the out-of-pocket expenses of your attendees.
This estimate includes an approximation of the expenses for travel, lodging, meals, and applicable wages (if any) for up to three attendees at the Initial Training Program.
Applicable law may require that you pay your trainees' wages during training.
Our estimate for initial training costs includes the estimated wages for 8 to 12 employees for pre-opening training that you provide at your Shop, and the estimated wages of one Shopkeeper attending the Initial Training Program.
Your costs may vary depending on whether you are required to pay wages, your selection of lodging and dining facilities, and the mode and distance of transportation selected.
You may also request that we permit additional attendees at the Initial Training Program for a fee, subject to our approval, but our estimate does not include the fees or costs for any such additional attendees.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, whether franchisees are required to pay wages to trainees during the initial training program depends on applicable law. The FDD indicates that franchisees are responsible for covering the out-of-pocket expenses for up to three people attending the initial training program, which includes costs for travel, lodging, meals, and wages, if legally required. Cream does not charge a fee for the initial training program for up to three people for the first shop.
The FDD estimates initial training expenses to range from $3,000 to $5,000. This estimate includes wages for 8 to 12 employees for pre-opening training at the shop and the wages of one shopkeeper attending the initial training program. The actual costs may fluctuate based on wage requirements, lodging and dining choices, and transportation methods.
Prospective Cream franchisees should be aware that these initial training expense estimates are for expenses incurred with unaffiliated third parties such as airlines, hotels, and restaurants. Franchisees should consult with legal counsel to determine their obligations regarding trainee wages in their specific location, as this can significantly impact their initial investment and operating costs.