What must a Cream franchisee obtain to demonstrate compliance with insurance requirements?

According to Cream's 2025 Franchise Disclosure Document, franchisees must routinely furnish copies of their Certificates of Insurance or other evidence of maintaining insurance coverage and paying premiums to Cream. This demonstrates that the franchisee has obtained and is maintaining the required insurance coverage. Cream reserves the right to demand that franchisees obtain insurance policies from a designated supplier.

Cream also specifies that if a franchisee fails to maintain the specified insurance, Cream has the option to obtain such insurance on behalf of the franchisee. In this case, the franchisee agrees to cooperate and reimburse Cream on demand for 120% of the costs of all premiums.

The insurance policies must be purchased from licensed insurers having a rating of "A/VIII" or higher by the then-current edition of Best Insurance Reports published by A.M. Best Company (or other similar publication or criteria Cream designates). Each insurance policy for liability coverage must name Cream and any of its affiliates as additional named insureds and provide for 30 days' prior written notice to Cream of a policy's material modification, cancellation, or expiration. Each insurance policy must also contain a waiver of all subrogation rights against Cream and its affiliates.