What is the transfer fee for a Cream franchise?
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 the 2025 FDD, Cream charges a $25,000 transfer fee when a franchisee sells their franchise to a new owner. This fee is payable to Cream. However, there are some exceptions to this fee.
The FDD states that no transfer fee is due if a franchise is transferred from a deceased owner to their surviving spouse, provided the transfer meets all other requirements. Additionally, if a franchisee transfers their franchise to a wholly-owned entity that solely operates Cream shops, the transfer fee is waived. However, the franchisee is still responsible for reimbursing Cream for any direct costs associated with documenting and processing the transfer, including reasonable legal fees.
In addition to the transfer fee, the prospective transferee must meet several conditions to be approved. They may need to complete the Cream training program, correct any existing shop deficiencies, and sign Cream's current franchise agreement and related documents, which may have different terms than the original agreement. The transferee may also need to sign a guaranty, update certain attachments, and provide evidence of measures taken to ensure a smooth transfer of operations.
These transfer conditions and fees are typical in franchising, as they allow Cream to ensure that new franchisees are qualified and that the brand standards are maintained. Franchisees should carefully consider these costs and requirements when planning to sell their Cream franchise.