factual

Who pays for the training program required for Cream franchise transfers?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (5) all persons required to complete training under the transferee's franchise agreement satisfactorily complete our training program, and transferee has paid all costs and expenses we incur to provide the training program to such persons;

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, the transferee is responsible for covering the costs and expenses associated with the training program required for franchise transfers. Specifically, the FDD states that all individuals required to complete training under the transferee's franchise agreement must satisfactorily complete Cream's training program. The transferee is obligated to pay all costs and expenses that Cream incurs to provide this training. This condition must be met before the franchise transfer can be finalized.

This means that a prospective Cream franchisee who is acquiring an existing franchise must factor in the cost of training when assessing the financial viability of the transfer. The exact amount will depend on Cream's training fees at the time of the transfer and the number of individuals requiring training. It is important for the transferee to clarify these costs with Cream during the due diligence process to avoid any unexpected financial burdens.

This requirement is fairly standard in the franchise industry, as franchisors typically want to ensure that new operators are adequately trained in their systems and standards. By placing the financial responsibility on the transferee, Cream ensures that only serious and committed candidates proceed with the transfer. This also protects the brand's reputation by maintaining consistent quality and service across all franchise locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.