Is Cream required to reimburse franchisees for costs associated with changes to marks?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand that the Marks and the System may evolve over time, including after you sign this Agreement. If we decide to modify, substitute, add, or discontinue the use of any Marks or the System, you agree to make such modifications and updates as we specify and to comply with all other directions we give regarding the use of the Marks and the System in connection with your Shop within a reasonable time after receiving notice from us. We are not required to reimburse you for any costs or expenses associated with making such changes, promoting a modified or substitute Mark, or for any loss of revenue due to any modification to the Marks or System.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream is not required to reimburse franchisees for any costs or expenses associated with changes to the marks or system. This includes modifications, substitutions, additions, or discontinuing the use of any marks or the system. Franchisees are responsible for making the specified modifications and updates within a reasonable time after receiving notice from Cream.
This policy means that if Cream decides to update its brand, logo, or operational system, franchisees will bear the financial burden of implementing these changes in their shops. These costs can include expenses related to promoting a modified or substitute mark, as well as any loss of revenue resulting from modifications to the marks or system. Franchisees need to be prepared to invest additional capital to keep their shops aligned with Cream's evolving standards.
This requirement is not uncommon in the franchise industry, as franchisors often need to update their systems and branding to stay competitive. However, it's important for prospective Cream franchisees to understand that these changes can represent a significant, unbudgeted expense. Franchisees should factor in potential future costs for rebranding, new equipment, and other updates when assessing the overall financial viability of the franchise.