To whom are the payments for ongoing 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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, ongoing inventory payments are made to both Cream and approved third-party suppliers. The FDD specifies that the estimated cost for ongoing inventory for the first three months of operation ranges from $52,000 to $87,000.
This means that as a Cream franchisee, you will need to establish relationships with Cream and other approved vendors to ensure a steady supply of necessary items like waffle mix, toppings, beverages, non-branded merchandise, paper products, and branded packaging materials. Managing these relationships and payments effectively will be crucial for maintaining smooth operations and meeting customer demand.
Prospective franchisees should confirm which specific inventory items must be purchased directly from Cream versus approved third-party suppliers. Understanding the payment terms and supply chain logistics for each category will help in budgeting and managing cash flow. It is also important to verify the process for becoming an approved third-party supplier if a franchisee wishes to source locally or has existing vendor relationships.