Under what condition is the Cream transfer fee waived for a transfer from a deceased owner?
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, the transfer fee is waived when a Cream 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 of the agreement. However, the franchisee must reimburse Cream for any direct costs incurred while documenting and processing the transfer, including reasonable legal fees.
In the event of the death or disability of the franchisee (or any of the owners if the franchisee is an entity), the executor, administrator, conservator, guardian, or other personal representative must transfer the person's interest in the Franchise Agreement, the Shop, or ownership interest in the franchisee to a third party approved by Cream. This transfer must occur within 180 days from the date of death or disability.
If the transfer is to the spouse or an immediate family member of the deceased, the transfer fee described in Section 12.C(10) is waived if the transfer meets all other conditions in Section 12.C. The transferee is still responsible for reimbursing Cream for any costs associated with documenting and processing the transfer, including reasonable attorney's fees. This is a notable benefit for the family of a deceased franchisee, as it reduces the financial burden during a difficult time, but it's important to note that legal and administrative costs will still apply.