Can Cream terminate and reinstate the Brand Fund?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may reduce or suspend Brand Fund Contributions and/or operations of the Brand Fund for one or more periods of any length and terminate (and, if terminated, reinstate) the Brand Fund and associated Brand Fund Contributions. If we terminate the Brand Fund, we will spend the remaining balance of the monies in the Brand Fund in accordance with our System Standards until such amounts are exhausted. We may elect to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the authority to terminate and reinstate the Brand Fund. Cream can 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 System Standards until the funds are exhausted.
This means that Cream franchisees are subject to the risk that the Brand Fund, which supports advertising, marketing, and public relations, could be reduced, suspended, or terminated. If the Brand Fund is terminated, any remaining money will be spent according to Cream's System Standards. Cream has the discretion to manage the Brand Fund, and franchisees do not have review rights over the Brand Fund's financial statements.
Cream also has the option to manage multiple Brand Funds based on geography or other factors, or to consolidate them. This gives Cream flexibility in how it manages and allocates advertising and marketing resources. Prospective franchisees should consider the potential impact of these changes on their local advertising and marketing efforts. Cream's control over the Brand Fund is typical in franchising, but the lack of franchisee input or financial transparency may be a concern for some.