Under what circumstances must the Cream franchisee Entity and its owners sign and deliver a revised Attachment A?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree and represent that Attachment A to this Agreement completely and accurately describes all of your owners and their interests in you as of the Effective Date. Each of your owners with a 10% or greater ownership interest in your Entity must execute a guarantee in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us. Our current form of guarantee is attached herein as Attachment D. Subject to our rights and your obligations under Section 12, you and your owners agree to sign and deliver to us revised Attachment A to reflect any permitted changes in the information that Attachment A now contains.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, if a Cream franchisee is an entity (corporation, LLC, or partnership), they must initially provide Attachment A, which accurately describes all owners and their interests as of the effective date of the franchise agreement. Furthermore, each owner with a 10% or greater ownership interest must execute a personal guarantee.
Subsequently, the Cream franchisee entity and its owners are obligated to sign and deliver a revised Attachment A to the franchisor. This revision is necessary to reflect any permitted changes in the information that the original Attachment A contained. This ensures that Cream always has current and accurate information about the ownership structure of its franchisees.
In the context of transferring any beneficial or ownership interest in the Cream franchise, the transferee(s) are required to sign the then-current form of guaranty, undertaking personally to be bound, jointly and severally, by all provisions of the Franchise Agreement and any ancillary agreements. They must also provide Cream with an updated Attachment A. This requirement ensures that all parties involved in the ownership of the franchise are fully aware of and agree to be bound by the obligations of the franchise agreement.