What is the Cream franchisee Entity required to identify on Attachment A?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree and represent that Attachment A to this Agreement completely and accurately describes all of your owners and their interests in you as of the Effective Date. Each of your owners with a 10% or greater ownership interest in your Entity must execute a guarantee in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us. Our current form of guarantee is attached herein as Attachment D. Subject to our rights and your obligations under Section 12, you and your owners agree to sign and deliver to us revised Attachment A to reflect any permitted changes in the information that Attachment A now contains.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, if a Cream franchisee is a corporation, limited liability company, or partnership (referred to as an "Entity"), they must accurately describe all of the entity's owners and their ownership interests on Attachment A to the Franchise Agreement as of the Effective Date.
This requirement ensures that Cream knows who the owners of the franchise are and their respective stakes in the business. This is important for maintaining control over the franchise system and ensuring compliance with the franchise agreement.
Furthermore, any owner with a 10% or greater ownership interest in the Entity must personally guarantee the franchisee's obligations under the Franchise Agreement. This means they are personally liable for the franchisee's performance and adherence to the agreement's terms. Cream also requires that the franchisee provide revised Attachment A to reflect any permitted changes to the ownership information.