How is the renewal fee for a Cream franchise calculated?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
When this Agreement expires, you may renew your franchise to operate your Shop for two successive terms of 5 years each, if you meet the following conditions:
- (5) you pay us our renewal fee, which is 50% of the then-current initial franchise fee;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees have the option to renew their franchise agreement for two additional terms of 5 years each, provided they meet certain conditions. One of these conditions involves paying a renewal fee.
The renewal fee for a Cream franchise is calculated as 50% of the then-current initial franchise fee. This means that the amount required to renew the franchise will depend on what Cream is charging new franchisees at the time of renewal, not what the franchisee initially paid.
To be eligible for renewal, the franchisee must notify Cream of their intent to renew within a specific timeframe (between 180 and 270 days before the agreement expires), be in substantial compliance with the franchise agreement, maintain possession of the premises under an approved lease, agree to remodel or modify the shop to meet current standards, and sign the then-current franchise agreement, which may have different terms than the original agreement. The franchisee must also not be in violation of any agreements with Cream and must sign a general release of claims against Cream.