When is the initial franchise fee due for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment 1 | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Low | |||||
| Initial Franchise Fee | $40,000 | $40,000 | Lump sum | Upon signing Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the initial franchise fee of $40,000 is due upon signing the Franchise Agreement. This fee is paid in a lump sum directly to Cream.
This means that a prospective Cream franchisee must have the full $40,000 available at the time of signing the agreement to secure the rights to open and operate a Cream franchise. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights, providing initial training, and offering support during the setup phase.
It's important for potential franchisees to factor this immediate payment into their financial planning. Failing to have the funds available when required could delay or even prevent the franchise from moving forward. Franchisees should also be aware of Cream's refund policy regarding the initial franchise fee, which is typically outlined in Item 5 of the FDD.