Can Cream modify the requirements for a franchisee's bookkeeping, accounting, and recordkeeping?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to conduct all bookkeeping, accounting, and recordkeeping for your Shop using the software and other products and services we designate and/or approve from time to time, and conforming to the requirements, specifications, and formats we prescribe from time to time. Without limiting the foregoing, you agree that we may periodically require you to use a standard chart of accounts for your Shop's accounting and bookkeeping records, and if we do so, you agree to use all standard chart of accounts, ledgers, and similar organizational and standardized methods of recording your Shop's financial performance and profits, losses, assets, revenue, and expenses. We may modify our requirements for your Shop's bookkeeping, accounting, and recordkeeping from time to time and you agree to comply with all of our System Standards for bookkeeping, accounting, and recordkeeping.
You agree to deliver to us such financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, tax records, and such other records we request, at the intervals and in the formats we specify. We may modify our requirements for the types, formats, specifications, and methods for your reports and financial statements from time to time. You agree to verify and sign each report and financial statement in the manner we prescribe. We may use and/or disclose these reports and/or any data derived from these reports, as we determine in our sole discretion. You agree to preserve and maintain all records in a secure location at your Shop 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).
At our request, you will provide current financial information for your owners and guarantors sufficient to demonstrate such owners and guarantors' ability to satisfy their financial obligations under their individual guarantees (our form of which is attached hereto as Attachment D).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream can modify the requirements for a franchisee's bookkeeping, accounting, and recordkeeping. Franchisees must conduct all bookkeeping, accounting, and recordkeeping for their shop using software and other products and services that Cream designates or approves. These must conform to the requirements, specifications, and formats that Cream prescribes. Cream may periodically require franchisees to use a standard chart of accounts for their shop's accounting and bookkeeping records. Franchisees must use all standard chart of accounts, ledgers, and similar organizational and standardized methods of recording their shop's financial performance and profits, losses, assets, revenue, and expenses.
Cream retains the right to modify these bookkeeping, accounting, and recordkeeping requirements from time to time, and franchisees must comply with all of Cream's system standards for these practices. Franchisees must also deliver financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, and tax records, at the intervals and in the formats Cream specifies. Cream can also modify the requirements for the types, formats, specifications, and methods for these reports and financial statements. Franchisees must verify and sign each report and financial statement as prescribed by Cream.
Cream may use and/or disclose these reports and any data derived from them as it determines in its sole discretion. Franchisees must preserve and maintain all records in a secure location at their shop for at least three years, or such longer period as may be required by applicable law. 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. Cream may also request current financial information for the franchisee's owners and guarantors to demonstrate their ability to satisfy their financial obligations under their individual guarantees.