Does Cream require the transfer of all necessary business licenses 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.
We may review all information regarding your Shop that you give the transferee, correct any information that we believe is inaccurate, and give the transferee copies of any reports that you have given us or we have made regarding your Shop.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must provide evidence that appropriate measures have been taken to effect the transfer of their shop. This includes transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new ones, in accordance with Cream's System Standards.
This requirement ensures that the Cream franchise can continue operating smoothly under new ownership, without any interruption due to licensing or contractual issues. The transferee must meet Cream's standards for operation.
This condition is typical in franchising, as franchisors need to ensure brand consistency and legal compliance across all locations. The cost of transferring or obtaining new licenses and agreements will be borne by the franchisee. Cream retains the right to review all information provided to the transferee and correct any inaccuracies.