To whom are the payments for initial inventory paid for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement)
| Type of Expenditure | Amount | Method of Payment 1 | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Low | |||||
| Initial Franchise Fee | $40,000 | $40,000 | Lump sum | Upon signing Franchise Agreement | Us |
| Real Estate (3 Months’ | $18,000 | $60,000 | As arranged | As arranged | Landlord |
| Rent) 2 | |||||
| Lease and Uti |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the payments for initial inventory are made to both Cream and approved third-party suppliers. The initial inventory includes items purchased from Cream, estimated between $16,000 and $21,000, as well as other inventory like waffle mix, toppings, beverages, non-branded merchandise, paper products, and branded packaging materials that must be purchased from approved third-party suppliers.
This means a prospective Cream franchisee will need to manage relationships and payments to multiple entities to secure their initial inventory. It is important to note that the initial inventory investment is estimated to be between $20,000 and $26,000. Ongoing inventory for the first three months is estimated to be between $52,000 and $87,000.
Understanding the specific suppliers and the payment terms associated with each is crucial for budgeting and managing cash flow. Franchisees should clarify with Cream which items must be purchased directly from them versus approved third-party suppliers to plan accordingly. This also highlights the importance of maintaining good relationships with these suppliers to ensure a smooth and consistent supply chain for the Cream franchise.