How can Cream use the reports and data derived from the reports submitted by a Cream franchisee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to establish and maintain at your own expense a bookkeeping, accounting, and recordkeeping system conforming to the requirements and formats we prescribe from time to time. You further agree to deliver to us such additional financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, tax records, and such other records we request, at the intervals and in the format we specify from time to time.
You agree to verify and sign each report and financial statement in the manner we prescribe. We may disclose data derived from these reports. You agree to preserve and maintain all records in a secure location at your business for at least three years, or such longer period as may be required by applicable law (including sales checks, purchase orders, invoices, payroll records, customer lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream can disclose data derived from the financial and statistical reports that franchisees are required to submit. Cream requires franchisees to establish and maintain a bookkeeping, accounting, and recordkeeping system that conforms to Cream's requirements. Franchisees must also deliver additional financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, and tax records. These records must be delivered at intervals and in the format specified by Cream. Franchisees must verify and sign each report and financial statement as prescribed by Cream.
Cream uses this data to understand the financial performance of individual franchise locations and the Cream franchise system as a whole. This information likely informs Cream's decisions regarding marketing strategies, operational improvements, and overall business development. Cream also uses this data to ensure franchisees are meeting their financial obligations and complying with the franchise agreement.
It is standard practice in franchising for franchisors to collect financial and operational data from franchisees. This allows the franchisor to monitor the health of the system, identify trends, and provide support to franchisees. Franchisees benefit from this data collection as well, as it can lead to improvements in the system that increase profitability and efficiency. However, franchisees should be aware of how their data is being used and ensure that the franchisor has appropriate security measures in place to protect sensitive information.