Is the initial franchise fee for a Cream franchise refundable?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
1-1">Initial Franchise Fee
You must pay us an initial franchise fee of $40,000 when you sign the Franchise Agreement. The initial franchise fee is paya
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the initial franchise fee is not refundable. The standard initial franchise fee is $40,000, which must be paid in a lump sum when signing the Franchise Agreement. This fee is considered fully earned by Cream upon signing the agreement.
Cream also charges other initial fees that are non-refundable. These include an initial gift card set-up fee of $149 and a development fee for those signing an Area Development Agreement. The development fee varies based on the number of Cream shops the franchisee agrees to develop: $105,000 for three shops, $140,000 for four shops, and $150,000 for five shops.
Prospective franchisees should be aware that these initial fees are non-refundable, regardless of whether they proceed with opening a Cream franchise. This is a common practice in franchising, as the initial fee compensates the franchisor for the initial costs of granting the franchise and providing initial support.