Must a Cream franchisee submit a request in writing to consider approving a new supplier before purchasing from them?

According to Cream's 2025 Franchise Disclosure Document, a franchisee must submit a written request for Cream to consider approving a supplier that is not already an approved supplier before purchasing any items or services from them. Cream has the discretion to approve or disapprove any alternative supplier based on its criteria, which may change. Cream may also refuse to consider or approve any proposed alternative supplier, especially for Proprietary Products. Cream can also revoke approval of any supplier at any time, with or without cause.

This requirement allows Cream to maintain quality control and uniformity across all franchise locations. By requiring franchisees to seek approval for new suppliers, Cream can ensure that all products and services meet its standards. This protects the brand's reputation and ensures customers receive a consistent experience at any Cream location.

However, this policy also limits the franchisee's autonomy in sourcing products and services. Franchisees may not be able to take advantage of potentially lower prices or better terms from non-approved suppliers without Cream's consent. This could impact the franchisee's profitability and operational flexibility. Franchisees should carefully consider these limitations and discuss potential supplier needs with Cream during their due diligence process.

Cream also benefits from this arrangement, as it may receive consideration, revenue, and/or profits based on franchisee purchases from approved suppliers. This can include promotional allowances, rebates, volume discounts, and other payments from suppliers based on sales to franchisees. Cream retains the right to use such consideration without restriction, creating a potential revenue stream for the franchisor based on the purchasing activities of its franchisees.