Is a Cream franchisee required to verify and sign each report and financial statement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to deliver to us such financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, tax records, and such other records we request, at the intervals and in the formats we specify. We may modify our requirements for the types, formats, specifications, and methods for your reports and financial statements from time to time. You agree to verify and sign each report and financial statement in the manner we prescribe. We may use and/or disclose these reports and/or any data derived from these reports, as we determine in our sole discretion. You agree to preserve and maintain all records in a secure location at your Shop for at least three years, or such longer period as may be required by applicable law (including sales checks, purchase orders, invoices, payroll records, customer lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees are required to verify and sign each report and financial statement. Cream also specifies the manner in which the franchisee must verify and sign these documents. Cream has the right to use or disclose these reports and any data derived from them, as they determine at their sole discretion.
Cream requires franchisees to maintain bookkeeping, accounting, and recordkeeping systems that conform to Cream's requirements and formats. Franchisees must also deliver additional financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, and tax records, at intervals and formats specified by Cream.
Cream may modify the requirements for the types, formats, specifications, and methods for these reports and financial statements from time to time. Franchisees must preserve and maintain all records in a secure location for at least three years, or longer if required by law, including sales checks, purchase orders, invoices, payroll records, customer lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers. Cream may also request current financial information from the franchisee's owners and guarantors to demonstrate their ability to meet financial obligations under their guarantees.