When requesting consent for a transfer of a Cream franchise, what information or documents about the transferee and its owners must be provided?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not transfer this Agreement before your Shop has opened for business. Thereafter, we will approve a transfer if all of the following requirements are met:
(1) you submit an application in writing requesting our consent and providing us all information or documents we request about the transferee and its owners that we request to evaluate their ability to satisfy their respective obligations under our then-current form of franchise agreement and any documents ancillary thereto, and each such person must have completed and satisfied all of our application and certification requirements, including the criteria that neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest in or perform services for a Competitive Business;
(2) you and your owners have not violated any provision of this Agreement or any other agreement with us or our affiliates during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer, including that you have paid all Royalties, Brand Fund Contributions, and other amounts owed to us, our affiliates, and third-party suppliers, and have submitted all required reports and statements;
(3) you provide us executed versions of any documents executed by you (or your owners) and transferee (and its owners) to effect the transfer, and all other information we request about the proposed transfer, and such transfer meets all of our requirements, including terms, closing date, purchase price, amount of debt and payment terms, and we have determined that the purchase price and other terms of the transfer will not adversely affect the operation of your Shop;
(4) you (and your owners) and the transferee (and its owners) sign all of the documents we are then requiring in connection with a transfer, in a form satisfactory to us, including: (i) a release of any and all claims (except for claims which cannot be released or waived pursuant to applicable law) against us and our affiliates and our and their owners, officers, directors, employees, and agents, and (ii) covenants that you and your transferring owners agree to satisfy all post-termination obligations under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, they must submit a written application requesting Cream's consent. As part of this application, Cream requires all information and documents it deems necessary about the prospective transferee and their owners. This information is used to evaluate the transferee's ability to meet the obligations outlined in Cream's then-current Franchise Agreement and any related documents.
Furthermore, the transferee and their owners must fulfill all of Cream's application and certification requirements. A key criterion is that neither the transferee, nor its owners (if the transferee is an entity), nor their affiliates can have any ownership interest in or perform services for a business that Cream considers competitive.
In addition to the application and related documents, the transferring franchisee must provide Cream with executed copies of all documents related to the transfer that have been signed by both the current franchisee (and their owners) and the transferee (and their owners). The transfer itself must also meet all of Cream's requirements, including those related to the terms, closing date, purchase price, debt amount, and payment terms. Cream will assess whether the purchase price and other transfer terms will negatively impact the transferee's ability to fulfill the franchise agreement.
Finally, both the transferring franchisee (and their owners) and the transferee (and their owners) are required to sign all documents that Cream requires in connection with the transfer. These documents must be in a form satisfactory to Cream and include a release of claims against Cream and its affiliates, as well as covenants ensuring that the transferring franchisee and their owners will meet all post-termination obligations under the Franchise Agreement.