Is Cream obligated to provide a reason if they revoke approval of a supplier?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
If you would like us to consider approving a supplier that is not an approved supplier, you must submit your request in writing before purchasing any items or services from that supplier. We will make all determinations about whether to approve an alternative supplier in our discretion based on our then-current criteria, which may change from time to time. We may also refuse to consider and/or approve any proposed alternative supplier for any reason whatsoever, including that we will not under any circumstances approve or consider any alternative supplier for Proprietary Products. We may, with or without cause, revoke our approval of any supplier at any time.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the right to revoke approval of any supplier at any time, with or without cause. This means that Cream is not obligated to provide a reason for revoking approval.
This policy gives Cream significant control over the supply chain and the products used in Cream franchises. Cream can change suppliers based on its own criteria, which may include factors like pricing, advertising support, or services. Cream may also benefit financially from these supplier relationships through rebates or other incentives.
For a potential Cream franchisee, this means they must be prepared to switch suppliers if Cream revokes approval of a previously approved supplier. It also means the franchisee has no recourse if they disagree with Cream's decision. It is important to maintain open communication with Cream to understand their supplier requirements and any potential changes.