What happens to the remaining balance of the Cream Brand Fund if it is terminated?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may reduce or suspend Brand Fund Contributions and/or operations of the Brand Fund for one or more periods of any length and terminate (and, if terminated, reinstate) the Brand Fund and associated Brand Fund Contributions. If we terminate the Brand Fund, we will spend the remaining balance of the monies in the Brand Fund in accordance with our System Standards until such amounts are exhausted.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, should the Brand Fund be terminated, Cream will spend the remaining balance of the monies in the Brand Fund in accordance with their System Standards until such amounts are exhausted.
This means that if Cream decides to discontinue the Brand Fund, the money that has accumulated within it will not be returned to franchisees or otherwise distributed. Instead, Cream will continue to use the funds for advertising, marketing, and public relations activities that align with the established System Standards.
For a prospective Cream franchisee, this indicates that contributions to the Brand Fund are non-refundable and are subject to Cream's discretion in how they are spent, even in the event of the fund's termination. Franchisees should be aware that they will not have a claim to any remaining balance should the Brand Fund be discontinued.