Is there a transfer fee for a Cream franchise transfer from a deceased owner to their surviving spouse?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ansferring all associated Franchise Agreements executed pursuant to the terms hereof, and the operations of any associated Jeni's Ice Creams Scoop Shops);
- (6) the transferee must (if the transfer is of this Agreement or your Development Rights) sign our then-current form of area development agreement and related documents, any and all of the provisions of which may differ materially from any and all of those contained in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a transfer fee is not required when a franchise is transferred from a deceased owner to their surviving spouse, provided that the transfer adheres to all other terms and conditions outlined in Section 4. However, the surviving spouse is responsible for reimbursing Cream for any direct costs incurred during the documentation and processing of the transfer, including reasonable legal fees.
This waiver of the $25,000 transfer fee can be a significant benefit for the surviving spouse, easing the financial burden during a difficult time. However, it's important to note that this waiver is conditional. The transfer must still comply with all other requirements specified in Section 4 of the franchise agreement. This likely includes providing necessary documentation, obtaining Cream's approval of the transfer, and ensuring the transferee meets Cream's standards for franchisees.
The requirement to reimburse Cream for direct costs, such as legal fees, is a standard practice in franchising. While the transfer fee itself is waived, the surviving spouse should be prepared to cover these additional expenses. It would be prudent to obtain an estimate of these costs from Cream to budget accordingly. This policy ensures that while Cream provides some financial relief by waiving the transfer fee, they are not burdened with covering the administrative and legal expenses associated with the transfer.