What must a Cream franchisee provide to show that appropriate measures have been taken to effect the transfer as it relates to the operation of the shop?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (11) you provide us the evidence we request to show that appropriate measures have been taken to effect the transfer as it relates to the operation of your Shop, including transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new business licenses, insurance policies and material agreements, each in accordance with our System Standards.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their shop must provide evidence that appropriate measures have been taken to facilitate the transfer concerning the shop's operation. This includes transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new ones, in accordance with Cream's System Standards.
This requirement ensures that the shop can continue operating smoothly under new ownership without any legal or operational disruptions. The incoming franchisee must have all the necessary permits and coverage to run the business legally and safely.
Cream retains the right to request specific evidence to verify that these measures have been taken. This provision protects Cream's brand and reputation by ensuring that all franchisees, including transferees, meet the franchisor's standards. It is the franchisee's responsibility to ensure a seamless transition of these essential operational elements.