To whom are the payments for insurance 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 Franchis |
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 insurance are made to unaffiliated third parties, such as insurance companies. The FDD indicates that the estimated cost for insurance for the first three months of operation ranges from $500 to $750. These payments are typically arranged and incurred as needed.
This means that as a Cream franchisee, you will be responsible for securing and maintaining the necessary insurance coverage for your shop. The cost of this insurance is part of your initial investment and ongoing operational expenses. The specific amount you pay will depend on factors such as the insurance company's rates, the coverage you choose, and your creditworthiness.
It is important to note that Cream does not specify the exact type or amount of insurance required in this section, but Item 8 of the FDD likely provides more details on the insurance requirements. Prospective franchisees should carefully review Item 8 and consult with an insurance professional to ensure they obtain adequate coverage and understand the payment terms.