What payments must be current for a Cream franchisee to be eligible for renewal?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) you and your owners have not violated any provision of this Agreement or any other agreement with us or our affiliates during both the 60-day period before you give us written notice of your election to acquire a successor franchise and on the date on which the term of the successor franchise commences, in full compliance with this Agreement including that you have paid all Royalties, Brand Fund Contributions, and other amounts owed to us, our affiliates, and third-party suppliers, and have submitted all required reports and statements;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must have paid all required amounts to be eligible for renewal. Specifically, the franchisee must be current on all Royalties, Brand Fund Contributions, and other amounts owed to Cream, its affiliates, and third-party suppliers. This requirement applies both during the 60-day period before the franchisee provides written notice of their intent to renew and on the date the renewal term begins.
In practical terms, this means a Cream franchisee cannot have any outstanding debts to Cream or its associated entities when seeking to renew their franchise agreement. This includes not only the standard royalty and brand fund contributions but also any other fees or payments that may be owed to Cream or its suppliers.
This condition is fairly standard in franchising, as franchisors want to ensure that franchisees are in good financial standing and fully compliant with their financial obligations before granting a renewal. Failing to meet these payment obligations could prevent a Cream franchisee from being able to renew their franchise. Franchisees should maintain meticulous records of all payments to ensure compliance.