In which states should the Representations Statement NOT be signed or initialed for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
REPRESENTATIONS STATEMENT
DO NOT SIGN OR INITIAL THIS QUESTIONNAIRE IF YOU ARE LOCATED IN, A RESIDENT OF, OR YOUR FRANCHISED BUSINESS WILL BE LOCATED IN: ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, VIRGINIA, OR WISCONSIN.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Representations Statement should not be signed or initialed if the prospective franchisee is located in, is a resident of, or will locate their franchised business in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin. This instruction is explicitly stated within the Representations Statement itself.
Cream requires this statement to ensure that franchisees acknowledge the significant, long-term commitment and associated risks of purchasing a Cream franchise. It also confirms that the franchisee is not relying on any representations or promises outside of what is documented in the Franchise Disclosure Document (FDD). By having franchisees acknowledge this, Cream aims to mitigate potential disputes or misunderstandings regarding the scope of the franchise agreement and the franchisee's responsibilities.
However, the FDD stipulates that if the franchise is subject to franchise registration laws in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin, no signed statement can waive claims under state franchise law or disclaim reliance on franchisor statements. This provision supersedes any other term in any document executed in connection with the franchise, reinforcing franchisee rights in these states. This dual approach—not signing the statement initially, yet retaining legal protections—likely reflects an attempt to comply with varying state regulations while ensuring franchisees are fully informed and protected under applicable laws.