When is the reimbursement for non-approved product or vendor testing due to Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Non-Approved | Reimbursement of | As incurred | You must reimburse our costs and expenses if you |
| Product or | our costs and | ask us to evaluate any vendors or products that we | |
| Vendor Testing | expenses | have not approved and we agree to do so. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee requests that Cream evaluate non-approved vendors or products, and Cream agrees to do so, the franchisee must reimburse Cream for all costs and expenses incurred. This reimbursement is due 'as incurred,' meaning Cream expects payment as soon as these costs are generated.
This 'as incurred' payment schedule is common for reimbursable expenses in franchising. It means Cream does not wait until the end of the month or quarter to bill the franchisee; instead, they will likely invoice for these costs shortly after they are incurred. This could include expenses related to product testing, vendor evaluation, or any related administrative work.
For a prospective Cream franchisee, this means maintaining sufficient cash flow to cover these potential costs promptly. Before requesting any non-approved vendor or product testing, it would be prudent to get an estimate of the expected costs from Cream to avoid unexpected financial strain. Additionally, franchisees should clarify with Cream the specific procedures for invoicing and payment of these expenses to ensure compliance and avoid late payment penalties.