When is the Cream renewal fee due?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Renewal Fee | $20,000 | As incurred, prior to renewal | You must pay this fee as one of the conditions of obtaining a successor franchise upon the expiration of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the renewal fee is $20,000 and is due as incurred, prior to renewal. This means that if a franchisee wants to renew their franchise agreement with Cream, they must pay the $20,000 renewal fee before the renewal is officially granted.
This fee is a condition of obtaining a successor franchise upon the expiration of the current Franchise Agreement. It is important for prospective franchisees to factor this cost into their long-term financial planning, as it represents a significant expense that will be incurred if they choose to continue operating their Cream franchise beyond the initial term.
Franchise renewal fees are a common practice in the franchise industry, allowing the franchisor to recoup administrative and legal costs associated with the renewal process. The fee also ensures that only serious and committed franchisees continue to operate under the brand. Franchisees should carefully consider the potential return on investment and the benefits of continuing the franchise relationship before paying the renewal fee.