What does the Representations Statement for Cream say about the franchisee's own independent determination?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. | INITIAL: |
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| I received a copy of the FDD at least 14 calendar days before I executed a Franchise | INITIAL: |
| Agreement or paid Franchisor or its affiliates any fees. I understand that all of my rights and | |
| responsibilities and those of Franchisor in connection with the franchise are set forth in these | |
| agreements and only in these agreements. I have had the opportunity to personally and | |
| carefully review these documents and have, in fact, done so. I have been advised to have | |
| professionals (such as lawyers and accountants) review the documents for me and to have | |
| them help me understand these documents. I have also been advised to consult with other | |
| franchisees regarding the risks associated with the purchase of the franchise. | |
| Neither the Franchisor nor any of its affiliates, officers, employees or agents (including any | INITIAL: |
| franchise broker) has made a statement, promise or assurance to me concerning any matter | |
| related to the franchise (including those regarding advertising, marketing, training, support | |
| service or assistance provided by Franchisor) that is contrary to, or different from, the | |
| information contained in the FDD. | |
| 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. | |
| I have made my own independent determination that I have the capital necessary to fund the | INITIAL: |
| franchised business and my living expenses, particularly during the start-up phase. |
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the franchisee must acknowledge that they have made their own independent determination regarding their ability to fund the franchised business. Specifically, the franchisee confirms they have the necessary capital to cover both the business expenses and their personal living expenses, especially during the initial start-up phase. This acknowledgment is part of a broader statement where the franchisee confirms they are not relying on any external representations or promises from Cream that are not explicitly stated in the Franchise Disclosure Document.
This requirement ensures that prospective Cream franchisees take full responsibility for assessing their financial capabilities before entering into the franchise agreement. By initialing this section, the franchisee affirms that their decision to invest in the franchise is based on their own due diligence and financial planning, rather than solely on projections or assurances provided by Cream. This protects Cream from potential future claims that franchisees were misled about the financial requirements of the business.
This type of clause is standard in franchise agreements. It underscores the importance of independent financial assessment and due diligence. Prospective franchisees should carefully evaluate their financial situation, considering all potential costs and revenue projections, and consult with financial advisors to ensure they are adequately prepared for the investment. The franchisee's independent determination of financial readiness is a critical component of the franchise agreement, highlighting the shared responsibility between Cream and its franchisees for the success of the business.