When requesting consent to transfer a Cream franchise, what written information and documents must be submitted to Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
e the transfer of your Shop or of any ownership interest in you without our prior written approval.
C. CONDITIONS FOR APPROVAL OF TRANSFER.
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, a franchisee must submit several documents and information to obtain Cream's consent to transfer the franchise. The franchisee must submit a written application requesting consent, including all information and documents Cream requests about the transferee and its owners. This information is used to evaluate the transferee's ability to meet the obligations under the current franchise agreement. The transferee and its owners must also satisfy Cream's application and certification requirements, ensuring they do not have an ownership interest in or perform services for a competitive business.
Additionally, the franchisee must provide executed versions of any documents signed by the franchisee (or their owners) and the transferee (and their owners) to complete the transfer. Cream also requires all other information about the proposed transfer, ensuring the transfer meets all of Cream's requirements, including terms, closing date, purchase price, amount of debt, and payment terms. Cream will assess whether the purchase price and other terms of the transfer will negatively impact the operation of the Cream shop.
Furthermore, both the franchisee (and their owners) and the transferee (and their owners) must sign all documents Cream requires in connection with the transfer, in a form satisfactory to Cream. These documents include a release of claims against Cream and its affiliates, as well as covenants that the franchisee and their transferring owners will fulfill all post-termination obligations under the Franchise Agreement. The franchisee must also provide evidence that appropriate measures have been taken to effect the transfer concerning the operation of their shop, including transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new ones in accordance with Cream's System Standards.
Finally, if the transfer involves any beneficial or ownership interest, the transferees must sign Cream's current form of guaranty, undertaking to be bound by all provisions of the agreement and any ancillary agreements. They must also provide an updated Attachment A. The franchisee is also responsible for paying a transfer fee of $25,000 to Cream.