To whom is the initial franchise fee paid when opening 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 is paid directly to the franchisor, referred to as "Us" in the document. This fee is a one-time, lump sum payment of $40,000, due upon signing the Franchise Agreement.
This payment structure is typical in franchising, where the initial fee compensates the franchisor for granting the franchise rights, providing initial training, and offering support to the new franchisee. The franchisee should ensure they have the full $40,000 available when they are ready to sign the agreement, as this is a prerequisite for moving forward with establishing their Cream franchise.
It is important to note that this initial franchise fee is separate from other potential fees or investments required to start the Cream business, such as real estate costs, leasehold improvements, equipment, and initial inventory. These additional costs are paid to various third-party suppliers, landlords, and other service providers as outlined in the FDD.