Will Cream make the financial statements of the Brand Fund available for review by franchisees?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor any of our affiliates has any fiduciary obligation to you or any other person for administering the Brand Fund. We will not make the financial statements of the Brand Fund available for review by franchisees. We may reduce or suspend Brand Fund Contributions and/or operations of the Brand Fund for one or more periods of any length and terminate (and, if terminated, reinstate) the Brand Fund and associated Brand Fund Contributions. If we terminate the Brand Fund, we will spend the remaining balance of the monies in the Brand Fund in accordance with our System Standards until such amounts are exhausted. We may elect to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream will not make the financial statements of the Brand Fund available for review by franchisees. Cream states that neither they nor their affiliates have any fiduciary obligation to franchisees or any other person for administering the Brand Fund. Cream retains the right to modify Brand Fund expenditures at any time.
Cream may reduce or suspend Brand Fund Contributions and/or operations of the Brand Fund for one or more periods of any length and terminate (and, if terminated, reinstate) the Brand Fund and associated Brand Fund Contributions. If Cream terminates the Brand Fund, they will spend the remaining balance of the monies in the Brand Fund in accordance with their System Standards until such amounts are exhausted. Cream may elect to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds.
This lack of transparency regarding the Brand Fund's financials is not uncommon in franchising, as franchisors often maintain control over marketing and advertising strategies. However, it's important for prospective Cream franchisees to understand that they will not have direct access to the Brand Fund's financial statements to verify how the contributions are being spent. Franchisees are required to contribute 2% of Net Sales to the Brand Fund, and Cream may modify the amount of the Brand Fund Contribution with 30 days prior notice to the franchisee, in an amount up to 4% of Net Sales.