What is the Cream franchisee required to provide to Cream if the transfer involves a beneficial or ownership interest?

According to Cream's 2025 Franchise Disclosure Document, if a transfer involves any beneficial or ownership interest in the franchisee, the transferee(s) must sign Cream's then-current form of guaranty. This guaranty undertakes that the transferee will be personally bound, jointly and severally, by all provisions of the Franchise Agreement and any ancillary agreements between the franchisee and Cream. Additionally, the franchisee must provide Cream with an updated Attachment D.

This requirement ensures that Cream maintains a consistent level of commitment and obligation from all parties involved in the franchise operation, even when ownership changes occur. By requiring a personal guaranty, Cream seeks to protect its interests and ensure that the new beneficial owner is fully accountable for the franchise's performance and adherence to the franchise agreement.

For a prospective Cream franchisee, this means that any transfer of ownership or beneficial interest will necessitate the new owner to personally guarantee the obligations under the franchise agreement. This is a standard practice in franchising, as it provides the franchisor with added security and recourse in case of default or non-compliance. The updated Attachment D likely contains information about the new ownership structure and contact details, which Cream needs to keep its records current.