What does the FTC's Franchise Rule permit Cream to provide in the disclosure document regarding financial performance?

According to Cream's 2025 Franchise Disclosure Document, the FTC's Franchise Rule allows Cream to provide information about the actual or potential financial performance of its franchised and/or company-owned locations, provided there is a reasonable basis for the information and it is included in the disclosure document. This means Cream is permitted to share data on revenues, costs, and profits that franchisees or company-owned shops have achieved.

However, Cream can only give financial performance information that differs from what is included in Item 19 of the FDD under specific conditions. These conditions are: if Cream provides the actual records of an existing location the franchisee is considering buying, or if Cream supplements the information in Item 19 by providing details about performance at a specific location or under particular circumstances. This ensures that any additional financial information is well-documented and relevant to the franchisee's situation.

Cream is not allowed to make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets outside of what is in Item 19. Furthermore, Cream does not authorize its employees or representatives to make such representations either orally or in writing. If a prospective franchisee receives any financial performance information or projections of future income outside of the FDD, they are instructed to report it to Cream's management, the Federal Trade Commission, and the appropriate state regulatory agencies. This is to protect potential franchisees from misleading or unsubstantiated claims.