What does the Representations Statement for Cream say about the franchisee's responsibility for business risks?
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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Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Representations Statement emphasizes that buying a franchise is not a guarantee of success and acknowledges the various business risks involved. It states that the success or failure of the franchise depends primarily on the franchisee's efforts, skills, and abilities, as well as the time they devote to the business.
The statement highlights several variables that can impact the franchise's performance, including competition, interest rates, economic conditions, inflation, operating costs, location, lease terms, and the general marketplace. By signing the Representations Statement, the franchisee confirms their awareness of these risks and their willingness to undertake them.
This acknowledgement is a standard practice in franchising, ensuring that franchisees understand they are responsible for the success of their business and are not solely reliant on the franchisor. It also confirms that the franchisee's decision to invest is based on their own assessment and not on any guarantees or promises made by Cream that are not explicitly stated in the Franchise Disclosure Document.