If Cream adopts an advertising policy, what are franchisees prohibited from doing regarding pricing?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
For any product or service for which we do not impose a maximum or minimum price, we may require you to comply with an advertising policy adopted by us which will prohibit you from advertising any price for a product or service that is different than our suggested retail price. Although you must comply with any advertising policy we adopt, you will not be prohibited from selling any product or service at a price above or below the suggested retail price unless we impose a maximum price or minimum price for such product or service.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 43–44)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if Cream implements an advertising policy, franchisees will be restricted from advertising prices that deviate from Cream's suggested retail price. However, even with an advertising policy in place, franchisees are generally allowed to sell products or services at prices above or below the suggested retail price, unless Cream establishes a maximum or minimum price for those items.
This policy allows Cream to maintain a consistent brand image and pricing strategy across all franchise locations. By setting a suggested retail price and restricting franchisees from advertising different prices, Cream aims to control customer expectations and prevent price wars between locations. This can be beneficial for franchisees as it reduces the pressure to compete solely on price and allows them to focus on other aspects of their business, such as customer service and product quality.
However, franchisees should be aware that Cream retains the right to set maximum or minimum prices, which would override the flexibility to price above or below the suggested retail price. It is important for prospective franchisees to understand Cream's pricing policies and how they may impact their ability to set prices that are competitive in their local market. Franchisees should also inquire about how frequently Cream adjusts its suggested retail prices and advertising policies to ensure they can adapt their pricing strategies accordingly.