Does Cream require franchisees to provide a security deposit for the lease of the premises?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Lease and Utility Security Deposits.
The estimate assumes that you will be required to provide a security deposit under the Lease equal to one month's rent.
The estimate also assumes that you may need to provide security deposits for your utilities (such as gas, water, and/or electric).
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream franchisees are likely required to provide a security deposit for the lease of their premises. The FDD states that the estimated initial investment includes an allowance for lease and utility security deposits.
The estimate provided in the FDD assumes that franchisees will need to provide a security deposit for the lease, equivalent to one month's rent. Additionally, the estimate accounts for potential security deposits required for utilities such as gas, water, and electricity. These security deposits are paid to unaffiliated third parties like utility companies or the landlord, not to Cream itself.
The estimated range for lease and utility security deposits is between $6,000 and $20,000. The actual amount will vary depending on the specific lease terms negotiated with the landlord and the requirements of the utility companies in the franchisee's area. It is important for prospective franchisees to factor in these potential costs when planning their initial investment.