Is the initial gift card set-up fee of $149 for a Cream franchise refundable?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
-refundable.
Gift Card Set-Up Fee
You must pay us an initial gift card set-up fee of $149 prior to opening your Shop. The gift card setup fee is p
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the initial gift card set-up fee of $149 is non-refundable. This fee must be paid before opening the shop.
This means that once a prospective Cream franchisee pays the $149 gift card set-up fee, they cannot get it back, regardless of whether they proceed with opening the franchise. This is a relatively small fee compared to other initial fees, such as the initial franchise fee of $40,000, but it is still an important consideration for budgeting purposes.
Franchisors commonly charge various initial fees to cover their costs associated with setting up a new franchise location. The non-refundable nature of these fees is also a common practice, as it helps to ensure that the franchisor is compensated for their time and resources, even if the franchisee ultimately decides not to move forward. Therefore, prospective Cream franchisees should carefully consider all the initial fees and their non-refundable status before signing the Franchise Agreement.