If a Cream franchisee wishes to use an affiliated Entity to enter into a Franchise Agreement, what must they do?

According to the 2025 FDD, if a Cream franchisee wishes to enter into a Franchise Agreement using an affiliated entity, they must first obtain Cream's approval of the entity, its owners, and its officers. This approval process will follow Cream's then-current franchise approval process.

This requirement ensures that Cream maintains control over who operates its franchises, even if the franchisee is not an individual but a business entity. By requiring approval of the entity, its owners, and officers, Cream can assess their qualifications and ensure they meet the brand's standards. This is a common practice in franchising, as franchisors want to ensure that all franchisees are capable of upholding the brand's reputation and operational standards.

For a prospective Cream franchisee, this means that if they plan to operate the franchise through a corporation, LLC, or other business entity, they need to be prepared to submit information about the entity and its key personnel for Cream's review and approval. This process may involve background checks, financial reviews, and assessments of the entity's management team. Failing to obtain approval could prevent the franchisee from moving forward with the franchise agreement.