Does Cream require the transfer of all material agreements as part of the transfer process?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (11) you provide us the evidence we request to show that appropriate measures have been taken to effect the transfer as it relates to the operation of your Shop, including transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new business licenses, insurance policies and material agreements, each in accordance with our System Standards.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must take appropriate measures to transfer all necessary business licenses, insurance policies, and material agreements, or obtain new ones, in accordance with Cream's System Standards as part of the transfer process.
This requirement ensures that the transferee is fully compliant with all operational standards and legal requirements. It also helps maintain consistency and uniformity across all Cream franchise locations. The transferee needs to either transfer existing agreements or secure new ones to meet Cream's standards.
This condition is one of several that Cream requires for approving a transfer. Others include submitting a written application, resolving any outstanding issues with the shop, and ensuring the transferee meets Cream's criteria. The transfer process also involves paying a $25,000 transfer fee and signing Cream's current franchise agreement, which may have different terms than the original agreement.