Under what conditions can Cream reduce or suspend Brand Fund Contributions?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, upon prior written notice to you, reduce or suspend Brand Fund Contributions and/or operations of the Brand Fund for one or more periods of any length and terminate (and, if terminated, reinstate) the Brand Fund and associated Brand Fund Contributions. If we terminate the Brand Fund, we will spend the remaining balance of the monies in the Brand Fund in accordance with this Section until such amounts are exhausted. We may elect to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds, in each case provided that each such Brand Fund will otherwise remain subject to this Section.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the authority to reduce or suspend Brand Fund contributions. Cream can do so for any length of time, and may also terminate or reinstate the Brand Fund. Cream must provide prior written notice to franchisees before reducing or suspending Brand Fund contributions or terminating the Brand Fund.
This means that Cream franchisees are subject to changes in the Brand Fund contribution requirements. Cream can change the contribution amount, suspend it temporarily, or even eliminate it altogether. However, Cream is obligated to provide written notice to franchisees before making such changes.
For a prospective Cream franchisee, this highlights the importance of understanding the terms and conditions related to the Brand Fund. While the Brand Fund is intended to benefit the entire Cream system, franchisees should be aware that Cream has the discretion to modify or discontinue it, potentially impacting marketing and advertising efforts. It would be prudent for a prospective franchisee to inquire about Cream's historical practices regarding the Brand Fund and its plans for the future.