For how long must a Cream franchisee preserve and maintain all records at their business?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to preserve and maintain all records in a secure location at your business for at least three years, or such longer period as may be required by applicable law (including sales checks, purchase orders, invoices, payroll records, customer lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must maintain all business records in a secure location for a minimum of three years. These records include sales checks, purchase orders, invoices, payroll records, customer lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers.
However, the obligation to preserve records extends beyond three years if applicable law requires a longer retention period. This means a Cream franchisee needs to be aware of all federal, state, and local laws regarding record retention and comply with the most stringent requirement, whether it's the three-year minimum specified by Cream or a longer period mandated by law.
This requirement ensures that Cream franchisees maintain accurate and complete financial records for auditing purposes, tax compliance, and to resolve any potential disputes. It is a standard practice in franchising to ensure consistency and transparency across all franchise locations. Prospective franchisees should consult with legal and accounting professionals to fully understand their record-keeping obligations and ensure compliance with both Cream's requirements and all applicable laws.