Under what condition is the transfer fee waived for a Cream franchise transfer after death or disability?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or disability of you (or if you are conducting business as an Entity, any of your owners), such person's executor, administrator, conservator, guardian, or other personal representative must transfer such person's interest in this Agreement, your Shop, or ownership interest in you, to a third party that we approve (which may be such person's heirs, beneficiaries, or devisees). That transfer must be completed within a reasonable time, not to exceed 180 days from the date of death or disability, and is subject to all of the terms and conditions in this Section 12, except that any transferee that is the spouse or immediate family member of the deceased will not have to pay the transfer fee described in Section 12.C(10) if the transfer meets all the other conditions in Section 12.C, and the transferee reimburses us for any costs we incur in connection with documenting and otherwise processing such transfer, including reasonable attorneys' fees.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the transfer fee is waived under specific conditions related to death or disability. If a Cream franchisee (or one of the owners of the franchise if the franchisee is an entity) dies or becomes disabled, their interest in the franchise agreement, shop, or ownership interest must be transferred to a third party approved by Cream. This transfer must occur within 180 days of the death or disability.
However, the $25,000 transfer fee is waived if the transferee is the spouse or an immediate family member of the deceased, provided that all other transfer conditions are met. The franchisee must still reimburse Cream for any costs incurred in documenting and processing the transfer, including reasonable attorney's fees.
This policy provides some relief to the family of a deceased or disabled franchisee, allowing them to transfer the franchise to a close relative without incurring the full transfer fee. However, it's important to note that the family will still be responsible for Cream's costs associated with the transfer, and the transferee must still be approved by Cream and meet all other transfer requirements.