Are there any exceptions to the Cream transfer fee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Transfer Fee | $25,000 | As incurred, prior to approval of transfer | You must pay this fee as one of the conditions of transferring your Shop and/or your Franchise Agreement and/or Area Development Agreement to another person we approve (other than to a wholly- owned and controlled entity, or if the transfer is from a deceased owner to a surviving spouse, though in such cases you must still reimburse us our processing costs, including legal fees). |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a transfer fee of $25,000 is required when transferring a Shop, Franchise Agreement, or Area Development Agreement to another approved person. However, there are exceptions to this fee.
The $25,000 transfer fee is waived if the transfer is to a wholly-owned and controlled entity or from a deceased owner to a surviving spouse. Despite the waiver of the $25,000 fee in these specific cases, Cream still requires reimbursement for processing costs, including legal fees.
This means that while Cream provides some relief on the transfer fee for transfers within the owner's control or to a surviving spouse, franchisees should still anticipate covering Cream's costs associated with processing the transfer. This is a fairly common practice in franchising, as the franchisor needs to ensure the new owner meets their standards and the transfer is legally sound.