Is a Cream franchisee required to use a standard chart of accounts if Cream requests it?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to conduct all bookkeeping, accounting, and recordkeeping for your Shop using the software and other products and services we designate and/or approve from time to time, and conforming to the requirements, specifications, and formats we prescribe from time to time. Without limiting the foregoing, you agree that we may periodically require you to use a standard chart of accounts for your Shop's accounting and bookkeeping records, and if we do so, you agree to use all standard chart of accounts, ledgers, and similar organizational and standardized methods of recording your Shop's financial performance and profits, losses, assets, revenue, and expenses. We may modify our requirements for your Shop's bookkeeping, accounting, and recordkeeping from time to time and you agree to comply with all of our System Standards for bookkeeping, accounting, and recordkeeping.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are required to adhere to specific bookkeeping, accounting, and recordkeeping standards set by Cream. This includes using designated software, products, and services. Cream may periodically require franchisees to use a standard chart of accounts for their shop's financial records.
If Cream mandates the use of a standard chart of accounts, franchisees must comply by using all standard charts of accounts, ledgers, and similar standardized methods for recording their shop's financial performance. This covers profits, losses, assets, revenue, and expenses. Cream retains the right to modify these bookkeeping, accounting, and recordkeeping requirements, and franchisees must comply with all system standards in this area.
This requirement ensures that Cream franchisees maintain uniform and organized financial records, allowing Cream to effectively monitor and analyze the financial performance of individual shops and the franchise system as a whole. For a prospective franchisee, this means being prepared to adapt to Cream's prescribed accounting methods and software, and to provide regular financial reports in the specified formats. Failing to comply with these requirements could result in penalties or other enforcement actions by Cream.