factual

Under what condition will a Cream franchisee provide current financial information for their owners and guarantors?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

Further, at our request, you will provide current financial information for your owners and guarantors sufficient to demonstrate such owners and guarantors ability to satisfy their financial obligations under their individual guarantees.

Each Guarantor consents and agrees that: (1) Guarantor's direct and immediate liability under this Guaranty will be joint and several, both with Franchise Owner and among other guarantors; (2) Guarantor will render any payment or performance required under the Agreement upon demand if Franchise Owner fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon our pursuit of any remedies against Franchise Owner or any other person; (4) this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence which we may from time to time grant to Franchise Owner or to any other person, including the acceptance of any partial payment or performance or the compromise or release of any claims, or any amendment, waiver or restatement to any terms of the Agreement, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the term of the Agreement; and (5) at our request, each Guarantor shall present updated financial information to us as reasonably necessary to demonstrate such Guarantor's ability to satisfy the financial obligations of Franchise Owner under the Agreement.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, a franchisee is required to provide current financial information for their owners and guarantors under specific circumstances. Cream can request this information to ensure that the owners and guarantors have the financial capability to meet their obligations as outlined in their individual guarantees.

This requirement allows Cream to assess the financial stability of those backing the franchise. This is a risk mitigation measure for the franchisor, ensuring that the financial obligations tied to the franchise agreement can be met.

Furthermore, each guarantor must present updated financial information to Cream if reasonably necessary to demonstrate their ability to satisfy the financial obligations of the franchisee under the agreement. This ensures that guarantors remain capable of fulfilling their financial responsibilities throughout the term of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.