To whom are the lease and utility security deposits paid for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement)
| 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 |
| Real Estate (3 Months’ | $18,000 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the lease and utility security deposits are paid to unaffiliated third parties such as utility companies or the landlord. These deposits are part of the estimated initial investment for a Cream franchise, with the low end of the estimate being $6,000 and the high end being $20,000.
The security deposit for the lease is typically equal to one month's rent. The security deposits for utilities cover services like gas, water, and electricity. The actual amount required for these deposits can vary based on the specific location of the Cream shop and the requirements of the landlord and utility providers.
Prospective Cream franchisees should factor these deposits into their initial financial planning. It's important to note that these amounts are estimates, and the actual costs could be higher or lower depending on the specific circumstances of the franchise location. Franchisees should communicate with the landlord and utility companies to determine the exact deposit amounts required for their Cream location.