What is the franchisee's obligation regarding workers' compensation insurance during Cream training?

According to Cream's 2025 Franchise Disclosure Document, franchisees are responsible for covering workers' compensation insurance for themselves and their personnel, including Mandatory Trainees, during any meetings, training courses, and programs, including the Initial Training Program. This means that before any training begins, a franchisee must ensure they have a workers' compensation policy in place that covers anyone participating in the training.

This requirement has significant implications for prospective Cream franchisees. Workers' compensation insurance can be a substantial expense, and franchisees must factor this cost into their initial investment and operating budget. The cost will vary based on the number of employees, the state where the business operates, and the specific risks associated with the job. Cream franchisees should obtain quotes from multiple insurance providers to ensure they are getting the best possible rate.

Cream's requirement that franchisees maintain workers' compensation insurance during training is standard practice in the franchise industry. It protects both the franchisee and the franchisor from potential liability in the event of an injury during training. Franchisees should consult with an insurance professional to understand their obligations and ensure they have adequate coverage.