If the transfer involves a beneficial or ownership interest, what must the transferee(s) sign for a Cream franchise?

According to Cream's 2025 Franchise Disclosure Document, if a transfer involves any beneficial or ownership interest, the transferee(s) must sign Cream's then-current form of guaranty. This guaranty undertakes that the transferee will be personally bound, jointly and severally, by all provisions of the Franchise Agreement and any ancillary agreements between the franchisee and Cream. Additionally, the transferee must provide Cream with an updated Attachment A.

In simpler terms, this means that if you're buying any part of an existing Cream franchise, you're not just taking over the business; you're also personally guaranteeing that all the obligations of the franchise agreement will be met. This includes financial obligations, operational standards, and any other requirements outlined in the agreement. The 'jointly and severally' aspect means that each owner is responsible for the entire obligation, not just a portion.

Attachment A likely contains information about the ownership structure and the individuals involved. Requiring an updated Attachment A ensures that Cream has current and accurate information about who owns and controls the franchise after the transfer. This is a standard practice in franchising to maintain control and ensure that all parties are aware of their responsibilities.

This requirement protects Cream by ensuring that all transferees with a beneficial or ownership interest are fully committed to upholding the franchise agreement. It also provides Cream with recourse if the franchise fails to meet its obligations. Prospective franchisees should carefully review the franchise agreement and any ancillary agreements before signing the guaranty to fully understand the extent of their personal liability.