Is a Cream franchisee required to provide financial information for their owners and guarantors?

According to Cream's 2025 Franchise Disclosure Document, Cream franchisees are required to provide current financial information for their owners and guarantors. This information must be sufficient to demonstrate the ability of these individuals to meet their financial obligations under their individual guarantees. Cream also includes its form of guarantee as Attachment D to the FDD.

This requirement means that prospective Cream franchisees should be prepared to share detailed financial records of their owners and guarantors with Cream. This may include, but is not limited to, balance sheets, income statements, tax returns, and other documentation that demonstrates their financial stability and ability to cover the financial obligations associated with the franchise agreement. Cream has the right to request this information at its discretion.

Cream's ability to request and review this financial information protects the brand by ensuring that franchisees and their financial backers have the resources to successfully operate the franchise and meet their financial commitments. This is a common practice in franchising, as the financial stability of the franchisee directly impacts the reputation and success of the Cream brand. Franchisees should maintain organized and up-to-date financial records for themselves, their owners, and guarantors to efficiently comply with these requests from Cream.