Can Cream invest any surplus Brand Fund money for future use?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We will account for the Brand Fund separately from our other funds. However, neither we nor any of our affiliates has any fiduciary obligation to you or any other person for administering the Brand Fund. The Brand Fund may spend in any fiscal year more or less than the total Brand Fund Contributions in that year, borrow from us or others (paying reasonable interest) to cover deficits, or invest any surplus for future use. We may administer the Brand Fund through a separate entity whenever we deem appropriate, and such entity will have all of the rights and duties specified herein. We have the right, but no obligation, to use collection agents and institute legal proceedings to collect Brand Fund Contributions at the Brand Fund's expense. We may also forgive, waive, settle, and compromise all claims by or against the Brand Fund in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the authority to manage the Brand Fund, which is used for advertising, marketing, and public relations programs. Cream can invest any surplus funds for future use. Cream is not obligated to ensure that franchisees directly benefit from Brand Fund expenditures in proportion to their contributions. Cream does not have any fiduciary duty to franchisees regarding the Brand Fund.
Cream has the discretion to spend more or less than the total contributions to the Brand Fund in any given year. Cream can also borrow funds to cover deficits, paying reasonable interest. Cream may administer the Brand Fund through a separate entity, which will have the same rights and duties as Cream. Cream can use collection agents or legal proceedings to collect Brand Fund contributions, and may also forgive, waive, settle, or compromise claims related to the Brand Fund.
Cream can reduce or suspend Brand Fund contributions or operations with prior written notice to franchisees. Cream can also terminate and reinstate the Brand Fund, and if terminated, the remaining balance will be spent according to the guidelines in the FDD. Cream can maintain multiple Brand Funds based on geography or other factors, and can consolidate or merge these funds, provided each fund remains subject to the outlined guidelines. These stipulations provide Cream with significant flexibility in managing and utilizing the Brand Fund, which may impact how advertising and marketing efforts are conducted and funded.