Can Cream terminate the Brand Fund?

According to Cream's 2025 Franchise Disclosure Document, Cream has the authority to terminate the Brand Fund. Cream can also reduce or suspend Brand Fund contributions and/or operations for any length of time. If Cream terminates the Brand Fund, the remaining balance will be spent according to Cream's System Standards until the funds are exhausted. Cream also has the option to reinstate the Brand Fund if it has been terminated. Cream can also elect to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds.

This gives Cream significant control over the Brand Fund, which is funded by franchisee contributions. While franchisees contribute a percentage of their net sales (currently 2%, up to a potential 4%), Cream ultimately decides how these funds are spent and can even suspend or terminate the fund altogether.

For a prospective Cream franchisee, this means that the advertising and marketing efforts supporting their shop could be reduced or eliminated at Cream's discretion. It's important to note that Cream has no fiduciary obligation to franchisees in administering the Brand Fund, and financial statements of the Brand Fund will not be available for franchisee review.

Given this level of control, a potential franchisee should inquire about Cream's historical practices with the Brand Fund, its long-term strategy for brand promotion, and the specific circumstances under which the fund might be suspended or terminated. Understanding Cream's vision for the Brand Fund is crucial for assessing the potential marketing support a franchisee can expect.