Does the Cream franchisor guarantee the likelihood of success of the franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. | INITIAL: |
|---|---|
| I received a copy of the FDD at least 14 calendar days before I executed a Franchise | INITIAL: |
| Agreement or paid Franchisor or its affiliates any fees. I understand that all of my rights and | |
| responsibilities and those of Franchisor in connection with the franchise are set forth in these | |
| agreements and only in these agreements. I have had the opportunity to personally and | |
| carefully review these documents and have, in fact, done so. I have been advised to have | |
| professionals (such as lawyers and accountants) review the documents for me and to have | |
| them help me understand these documents. I have also been advised to consult with other | |
| franchisees regarding the risks associated with the purchase of the franchise. | |
| Neither the Franchisor nor any of its affiliates, officers, employees or agents (including any | INITIAL: |
| franchise broker) has made a statement, promise or assurance to me concerning any matter | |
| related to the franchise (including those regarding advertising, marketing, training, support | |
| service or assistance provided by Franchisor) that is contrary to, or different from, the | |
| information contained in the FDD. | |
| My decision to purchase the franchise has not been influenced by any oral representations, | INITIAL: |
| assurances, warranties, guarantees or promises whatsoever made by the Franchisor or any of | |
| its officers, employees or agents (including any franchise broker), including as to the | |
| likelihood of success of the franchise. | |
| I have made my own independent determination that I have the capital necessary to fund the | INITIAL: |
| franchised business and my living expenses, particularly during the start-up phase. |
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream FDD, purchasing a franchise does not guarantee success. The FDD emphasizes that buying any franchise involves risk, and the success of a Cream franchise depends on many factors. These include the franchisee's skills and abilities, the time and effort they dedicate to the business, and external factors such as competition, interest rates, economic conditions, inflation, operating costs, location, lease terms, and general market conditions.
The FDD underscores that the success or failure of the Cream franchise rests primarily on the franchisee's efforts, not those of the franchisor. It also states that no guarantees or assurances regarding the likelihood of success have been made by Cream or its representatives. Prospective franchisees are advised to seek professional advice from lawyers and accountants and to consult with existing franchisees to fully understand the risks involved.
This disclosure is standard practice in the franchise industry. Franchisors typically avoid guaranteeing success due to the numerous uncontrollable variables that can impact a franchise's performance. By acknowledging these risks and disclaiming any guarantees, Cream aims to ensure that franchisees enter the agreement with realistic expectations and a clear understanding of their responsibilities.