For a Cream franchise, who is responsible for the out-of-pocket expenses of attendees at the Initial Training Program?
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, the franchisee is responsible for the out-of-pocket expenses of attendees at the Initial Training Program. While Cream does not charge a fee for the Initial Training Program for up to three people for the first shop, the franchisee must cover expenses such as travel, lodging, meals, and any applicable wages for those attendees. The FDD estimates these initial training program expenses to be between $3,000 and $5,000.
This means that a prospective Cream franchisee needs to budget for these additional costs on top of the other initial investment expenses. These costs can vary depending on factors such as the distance traveled, the choice of lodging and dining, and whether the franchisee is required to pay wages to trainees during the training period, as mandated by applicable law. The estimate also 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.
Cream's estimate does not include fees or costs for any additional attendees beyond the initial three. The franchisee may request to have additional attendees at the Initial Training Program for a fee, subject to Cream's approval. Therefore, franchisees should carefully consider the number of employees they send to the initial training and factor in all associated costs to accurately assess their initial investment.