How much advance notice will Cream provide before modifying the Technology Fee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
n redemption. Net Sales also include all insurance proceeds you receive for loss of business and loss of revenue, due to a casualty to or similar event at your Shop.
D. TECHNOLOGY FEE.
We require you to pay us a technology fee at the intervals we specify (the "Technology Fee"). As of the Effective Date, the Technology Fee is 0.25% of your Net Sales. We may modify the amount of the Technology Fee from time to time with 30 days prior notice to you, provided that the total amount of the Technology Fee will not at any time exceed 1% of your Net Sales.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream may modify the Technology Fee, which is initially 0.25% of Net Sales, from time to time. Cream will provide franchisees with 30 days prior notice before any modification to the Technology Fee. However, the FDD stipulates that the Technology Fee will not exceed 1% of Net Sales at any time.
This means that Cream franchisees will receive a 30-day heads-up before any changes to the Technology Fee take effect, allowing them some time to adjust their financial planning. However, franchisees should be aware that Cream has the right to change this fee, which could impact their operating costs.
It is important to note that while Cream must provide 30 days' notice, the Technology Fee can still be modified, potentially affecting a franchisee's profitability. Prospective franchisees should factor in the possibility of changes to the Technology Fee when evaluating the overall financial viability of a Cream franchise.