When is the insufficient funds fee due to Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Interest on Late Payment | Lesser of 1.5% per month or the highest commercial contract rate allowed by law | As incurred | All amounts which you owe us for any reason will bear interest accruing as of their due dates until payment is received in full. |
| Insufficient Funds Fee | Lesser of $100 or the highest amount permitted by applicable law, per occurrence | As incurred | We will charge you the lesser of our then-current fee, or the highest amount permitted by applicable law, per occurrence, for checks returned to us due to insufficient funds or in the event there are insufficient funds in the business account you designate to cover our withdrawals. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the insufficient funds fee is due as incurred. This means that Cream franchisees will be charged the insufficient funds fee at the time a check is returned due to insufficient funds, or if there are insufficient funds in the business account designated to cover withdrawals.
The amount of the insufficient funds fee will be the lesser of $100 or the highest amount permitted by applicable law, per occurrence. This fee is intended to cover Cream's administrative costs and any penalties they incur as a result of the returned payment or failed withdrawal.
It is important for prospective Cream franchisees to maintain sufficient funds in their designated business accounts to avoid incurring this fee. Franchisees should also be aware of the specific regulations in their jurisdiction regarding maximum allowable insufficient funds fees, as the amount charged by Cream will not exceed this legal limit.