Must Cream franchisees use suppliers approved or designated by Cream to develop or review the Construction Plan?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Once you receive our approval of your Lease, you must promptly apply for permits and other local licenses necessary to complete the construction outlined in your Construction Plans. We may require that you use suppliers we approve or designate to manage your permit and licensing applications. After signing your Lease and obtaining necessary permits, you must promptly begin to develop and outfit your Shop in accordance with the Construction Plans we have approved, at your cost, including that you must promptly obtain all required zoning changes, planning consents, building, utility, sign and business and other permits, consents and licenses necessary to lawfully open and operate your Shop. You may not modify the Construction Plans in any manner without our approval of such modifications. You must ensure that your Shop is designed and constructed in all respects in accordance with the Construction Plans we have approved. You must also, at your cost, to do all things necessary to develop and prepare your Shop for opening in accordance with this Agreement and our System Standards (defined in Section 4.E) including that you must:
- (1) obtain and install the operating assets we designate from time to time as meeting our System Standards for quality, design, appearance, function, and performance, including: (i) the computer hardware, software, and point-of-sale system (collectively, the "Computer System"), and (ii) all other fixtures, furniture, equipment, furnishings, and signage and other assets we specify as meeting our System Standards;
- (2) obtain all initial inventory and supplies we designate, in quantities sufficient to operate the Shop in accordance with our System Standards;
- (3) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating, and installation services;
- (4) obtain all certificates of insurance to demonstrate to us your compliance with our insurance requirements; and
- (5) satisfy all of your pre-opening requirements under this Agreement, including payment of fees and satisfaction of all training obligations.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, once a franchisee's lease is approved, they must apply for the necessary permits and licenses to complete the construction outlined in their Construction Plans. Cream may require franchisees to use suppliers they approve or designate to manage the permit and licensing applications. After the lease is signed and permits are obtained, the franchisee must begin developing and outfitting their shop according to the approved Construction Plans, at their own cost. Franchisees cannot modify the Construction Plans without Cream's approval and must ensure the shop is designed and constructed according to these approved plans.
Cream also specifies that franchisees must obtain and install operating assets that meet Cream's System Standards for quality, design, appearance, function, and performance. This includes computer hardware, software, point-of-sale systems, fixtures, furniture, equipment, furnishings, signage, and other assets. Franchisees must also obtain initial inventory and supplies that Cream designates in sufficient quantities to operate the shop according to System Standards.
Furthermore, franchisees are required to obtain customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating, and installation services. They must also obtain all certificates of insurance to demonstrate compliance with Cream's insurance requirements and satisfy all pre-opening requirements, including fee payments and training obligations. This ensures that the development and opening of the Cream shop align with the franchisor's standards and legal requirements.