When is the Cream relocation fee due?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Relocation Fee | $7,500, plus reimbursement of our costs and fees | As incurred | If you request to relocate your Shop and we approve your request, you must pay a relocation fee. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the relocation fee is due 'as incurred.' If a Cream franchisee requests to relocate their shop and Cream approves the request, the franchisee must pay a relocation fee of $7,500, plus reimbursement of Cream's costs and fees.
The 'as incurred' due date means that the fee is payable at the time the expense is created or the obligation arises. In the context of the relocation fee, this likely means the fee is due when Cream approves the relocation request and incurs costs related to the relocation.
It is important for prospective Cream franchisees to understand all the potential costs associated with running a franchise, including relocation fees. Franchisees should factor in these potential costs when making financial projections for their business. It would be prudent to clarify with Cream exactly when the relocation fee is considered 'incurred' and what specific costs and fees the reimbursement covers to avoid any surprises during the franchise term.