What information about the transferee does Cream require in the transfer application?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, to transfer a franchise, you must submit a written application requesting Cream's consent. This application must include all information and documents Cream requests about the transferee and their owners. This information is used to evaluate the transferee's ability to meet the obligations outlined in the current Franchise Agreement and any related documents.
Each person involved in the transfer must fulfill all of Cream's application and certification requirements. A key criterion is that neither the transferee, its owners (if the transferee is an entity), nor their affiliates can have an ownership interest in or perform services for a competitive business.
Additionally, the transferring franchisee must provide executed versions of all documents related to the transfer, including those between the franchisee (and their owners) and the transferee (and their owners). Cream also requires any other information about the proposed transfer that it deems necessary. The transfer itself must meet all of Cream's requirements, including the terms, closing date, purchase price, amount of debt, and payment terms. Cream will assess whether the purchase price and other terms of the transfer will negatively affect the transferee's ability to operate the Cream shop.