How must a Cream franchisee 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 Cream's 2025 Franchise Disclosure Document, franchisees must verify and sign each report and financial statement in the manner that Cream prescribes. Cream may also modify the requirements for the types, formats, specifications, and methods for the reports and financial statements from time to time. Cream also has the right to use or disclose these reports and any data derived from them as it determines at its sole discretion.
Cream requires franchisees to use specific software and other products and services for bookkeeping, accounting, and recordkeeping. Cream may periodically require franchisees to use a standard chart of accounts for their shop's accounting and bookkeeping records, including standard charts of accounts, ledgers, and similar organizational and standardized methods of recording a shop's financial performance and profits, losses, assets, revenue, and expenses.
Cream franchisees must also maintain all records in a secure location at their shop for at least three years, or such longer period as may be required by applicable law. These records include 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 for the franchisee's owners and guarantors to demonstrate their ability to satisfy their financial obligations under their individual guarantees.