What is a 'Principal Owner' for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You must identify one of your owners who is a natural person with at least 10% ownership interest and voting power in you and who will have authority and signatory power on your behalf (the "Principal Owner") to supervise the business you conduct under the Franchise Agreement. Your Principal Owner must be authorized to deal with us in all matters whatsoever which may arise with respect to the Franchise Agreement. You must obtain our written consent prior to changing the Principal Owner.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a Principal Owner is a designated individual who plays a crucial role in the oversight and management of the franchise. This person must be a natural person, meaning an actual human being, and hold at least a 10% ownership interest and voting power within the franchise entity. This ensures they have a vested interest and a significant say in the business's operations.
The Principal Owner is granted the authority to act on behalf of the franchise in all dealings with Cream. This includes having the power to sign documents and make decisions related to the Franchise Agreement. Cream requires written consent before any changes are made to the designated Principal Owner, ensuring they maintain control over who represents their brand.
For prospective Cream franchisees, this means that if the franchise is owned by a corporation, partnership, or other business entity, a specific individual must be identified and approved to serve as the main point of contact and decision-maker. This individual will undergo training and will be responsible for the shop's operations if a Shopkeeper is not in place or approved. This requirement ensures that Cream has a direct line of communication and a responsible party to address any issues that may arise during the franchise term.