If an owner of a Cream franchise wishes to transfer their interest, what documentation must they provide to Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
out our prior written consent. You shall not use or authorize the use of, and no third party shall on your behalf use, any written materials to advertise or promote the transfer of your Shop or of any ownership interest in you without our prior written approval.
C. CONDITIONS FOR APPROVAL OF TRANSFER.
You may not transfer this Agreement before your Shop has opened for business. Thereafter, we will approve a transfer if all of the following requirements are met:
- (1) you submit an application in writing requesting our consent and providing us all information or documents we request about the transferee and its owners that we request to evaluate their ability to satisfy their respective obligations under our then-current form of franchise agreement and any documents ancillary thereto, and each such person must have completed and satisfied all of our application and certification requirements, including the criteria that neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest in or perform services for a Competitive Business;
- (2) you and your owners have not violated any provision of this Agreement or any other agreement with us or our affiliates during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer, including that you have paid all Royalties, Brand Fund Contributions, and other amounts owed to us, our affiliates, and third-party suppliers, and have submitted all required reports and statements;
- (3) you provide us executed versions of any documents executed by you (or your owners) and transferee (and its owners) to effect the transfer, and all other information we request about the proposed transfer, and such transfer meets all of our requirements, including terms, closing date, purchase price, amount of debt and payment terms, and we have determined that the purchase price and other terms of the transfer will not adversely affect the operation of your Shop;
- (4) you (and your owners) and the transferee (and its owners) sign all of the documents we are then requiring in connection with a transfer, in a form satisfactory to us, including: (i) a release of any and all claims (except for claims which cannot be released or waived pursuant to applicable law) against us and our affiliates and our and their owners, officers, directors, employees, and agents, and (ii) covenants that you and your transferring owners agree to satisfy all post-termination obligations under this Agreement;
- (5) all persons required to complete training under the transferee's franchise agreement satisfactorily complete our training program, and transferee has paid all costs and expenses we incur to provide the training program to such persons;
- (6) if the proposed transfer requires notice to or approval from the landlord of the Premises, or any other action under the terms of the Lease, you have taken such appropriate action and delivered us evidence of the same;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their interest must submit a written application requesting consent from Cream. This application must include all information and documents Cream requests about the prospective transferee and their owners, so Cream can assess their ability to fulfill the obligations under the current Franchise Agreement and related documents. The transferee and their owners must also meet all of Cream's application and certification requirements, including not having an ownership interest in or providing services to a competitive business.
Additionally, the transferring franchisee must provide Cream with executed copies of all documents related to the transfer, signed by both the franchisee (and their owners) and the transferee (and their owners). Cream also requires any other information it deems necessary regarding the proposed transfer, ensuring that all terms, the closing date, the purchase price, the amount of debt, and payment terms meet Cream's requirements. Cream will assess whether the purchase price and other transfer terms will negatively impact the operation of the Shop or the fulfillment of development rights.
Furthermore, both the transferring franchisee (and their owners) and the transferee (and their owners) must sign all documents Cream requires for the transfer, in a form satisfactory to Cream. This includes a release of claims against Cream and its affiliates, as well as covenants ensuring that the transferring owners will meet all post-termination obligations under the Franchise Agreement. The franchisee must also provide evidence that appropriate measures have been taken to effect the transfer, including transferring or obtaining necessary business licenses, insurance policies, and material agreements, all in accordance with Cream's System Standards. If the transfer involves Development Rights, the franchisee must show that appropriate measures have been taken to fulfill these rights, including transferring necessary business licenses and material agreements.