To whom are the payments for professional fees 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 Esta |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, professional fees, which range from $10,000 to $17,000, are paid to unaffiliated third parties such as accountants and attorneys. These fees cover the costs associated with hiring professionals to assist with evaluating the franchise opportunity, negotiating the lease, forming a business entity, and setting up accounting systems.
This means that prospective Cream franchisees should budget between $10,000 and $17,000 for professional services. These services are crucial for ensuring that the franchisee understands the legal and financial aspects of the franchise agreement and business operation. Engaging qualified professionals can help franchisees make informed decisions and avoid potential pitfalls.
It is important to note that these fees are paid directly to the third-party professionals providing the services, not to Cream. This arrangement allows franchisees to select their own advisors and ensures that they receive independent and unbiased advice. Franchisees should carefully vet potential service providers to ensure they have the necessary expertise and experience to support their business.