Is Cream required to reimburse franchisees for costs associated with updating the Computer System to comply with modified System Standards?

According to Cream's 2025 Franchise Disclosure Document, Cream is not required to reimburse franchisees for costs associated with updating the Computer System to comply with modified System Standards. Cream may modify System Standards for the Computer System from time to time, including the designated or approved suppliers for the Computer System. Franchisees must update their Computer System to comply with the modified System Standards promptly after receiving notice.

There are no contractual limitations on the frequency and cost of this obligation. The initial cost of acquiring and installing the Computer System is estimated to be $2,000 to $4,000. The ongoing cost of maintaining and upgrading the Computer System to meet the then-current System Standards is estimated to be approximately $3,200 to $3,600 per year. This amount includes the monthly subscription fees that franchisees must pay for the required point-of-sale software and certain other required third-party subscriptions.

This lack of reimbursement could pose a financial risk to franchisees if Cream frequently modifies the System Standards, leading to unexpected and potentially substantial costs for updates. Prospective franchisees should factor in these potential costs when evaluating the Cream franchise opportunity. It is important to note that neither Cream nor its affiliates have any obligation to provide ongoing maintenance, repairs, upgrades, or updates to the Computer System.