factual

Should a prospective Cream franchisee's decision to purchase be influenced by oral representations not in the FDD?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

My decision to purchase the franchise has not been influenced by any oral representations, | INITIAL: | assurances, warranties, guarantees or promises whatsoever made by the Franchisor or any of | its officers, employees or agents (including any franchise broker), including as to the | likelihood of success of the franchise.

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

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, a prospective franchisee should not base their decision to purchase a franchise on any oral representations, assurances, warranties, guarantees, or promises made by Cream or its representatives that are not explicitly contained within the FDD. The FDD emphasizes that all rights and responsibilities of both the franchisee and Cream are detailed exclusively in the franchise agreement and associated documents.

Cream underscores the importance of conducting thorough due diligence, including reviewing the FDD carefully and seeking advice from professionals such as lawyers and accountants. Additionally, prospective franchisees are encouraged to consult with existing Cream franchisees to gain insights into the risks and rewards associated with the franchise. This proactive approach ensures that the decision to invest in a Cream franchise is well-informed and based on verified information.

By signing the Representations Statement, a prospective Cream franchisee acknowledges that they are not relying on any external statements or promises not found in the FDD. This acknowledgement is a formal declaration to Cream that the franchisee understands the investment's risks and has independently determined their financial capacity to support the franchise during its initial phase. This step is crucial for ensuring both parties have aligned expectations and a clear understanding of the franchise agreement's terms.

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.