What payments must be current to transfer a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not transfer this Agreement before your Shop has opened for business. Thereafter, we will approve a transfer if all of the following requirements are met:
(1) you submit an application in writing requesting our consent and providing us all information or documents we request about the transferee and its owners that we request to evaluate their ability to satisfy their respective obligations under our then-current form of franchise agreement and any documents ancillary thereto, and each such person must have completed and satisfied all of our application and certification requirements, including the criteria that neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest in or perform services for a Competitive Business;
(2) 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 requested our consent to the transfer and the period between your request and the effective date of the transfer, 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;
(3) you provide us executed versions of any documents executed by you (or your owners) and transferee (and its owners) to effect the transfer, and all other information we request about the proposed transfer, and such transfer meets all of our requirements, including terms, closing date, purchase price, amount of debt and payment terms, and we have determined that the purchase price and other terms of the transfer will not adversely affect the operation of your Shop;
(4) you (and your owners) and the transferee (and its owners) sign all of the documents we are then requiring in connection with a transfer, in a form satisfactory to us, including: (i) a release of any and all claims (except for claims which cannot be released or waived pursuant to applicable law) against us and our affiliates and our and their owners, officers, directors, employees, and agents, and (ii) covenants that you and your transferring owners agree to satisfy all post-termination obligations under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, to transfer a franchise, a franchisee must be current on all payments. Specifically, during the 60-day period before requesting consent for the transfer and the period between the request and the effective date of the transfer, the franchisee and their owners must not have violated any provision of the Franchise Agreement or any other agreement with Cream or its affiliates.
This requirement includes ensuring that all Royalties, Brand Fund Contributions, and other amounts owed to Cream, its affiliates, and third-party suppliers have been paid. Additionally, all required reports and statements must have been submitted.
This condition ensures that Cream only approves franchise transfers when the current franchisee is in good standing and has met all financial obligations. A prospective Cream franchisee should maintain meticulous records of all payments and submissions to ensure compliance with these transfer requirements.