What specific financial statements are Cream unable to include due to being in business less than 3 years?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We have not been in business for 3 years or more, and therefore cannot include all of the financial statements required by the FTC franchise rule. Attached to this Disclosure Document as Exhibit D is our audited opening balance sheet as of May 29, 2025. Our fiscal year ends on the fourth Sunday in the fiscal month of December, except when the fourth week of the fiscal month of December ends before December 31st, in which case our fiscal year is extended by one week.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 60)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has not been in business for three years or more. As a result, Cream cannot include all of the financial statements typically required by the FTC franchise rule. However, Cream has included its audited opening balance sheet as of May 29, 2025, as Exhibit D in the FDD.
This is a common situation for newer franchisors. The FTC requires a certain operating history to provide a complete set of financial statements. The audited balance sheet provides some insight into Cream's initial financial position.
A prospective Cream franchisee should carefully review the provided balance sheet and understand the company's assets, liabilities, and equity. It would be prudent to ask Cream for additional information about their financial projections, business plan, and the assumptions underlying their forecasts. Speaking with existing franchisees (once there are any) can also provide valuable insights into the potential financial performance of a Cream franchise.