If Cream terminates the Brand Fund, how will the remaining monies be spent?

According to Cream's 2025 Franchise Disclosure Document, should Cream terminate the Brand Fund, the remaining balance will be spent according to their System Standards until the funds are exhausted. This means that Cream has the discretion to decide how the remaining money in the Brand Fund is spent, as long as it aligns with their established System Standards.

For a prospective franchisee, this implies that they will not have a say in how the remaining Brand Fund monies are spent if the fund is terminated. Cream retains control over these funds and will allocate them based on their internal System Standards. This is a common practice in franchising, where the franchisor typically maintains control over marketing and advertising funds.

It is important for a potential Cream franchisee to understand the System Standards to which the Brand Fund monies will be allocated if the fund is terminated. While the FDD specifies that the funds will be spent in accordance with System Standards, it does not detail what those standards are. A prospective franchisee should inquire about the specific System Standards that would govern the spending of the remaining Brand Fund monies in the event of termination to fully understand how those funds might be used.