What action is Cream authorized to take regarding legends or endorsements on checks?

According to the 2025 FDD, Cream has specific rights regarding legends or endorsements placed on checks or similar items remitted to them. Cream's rights are detailed to protect their interests and ensure that no franchisee can unilaterally alter the terms of their financial obligations through restrictive endorsements.

Specifically, Cream is authorized to remove any special or restrictive legend or endorsement on any check or similar item. This action ensures that such legends or endorsements will have no legal effect, preventing franchisees from using these notations to claim a waiver, compromise, settlement, or accord and satisfaction of their debts. This clause is designed to prevent franchisees from attempting to alter the financial terms of their agreement by simply writing a note on a check.

This provision is fairly standard in franchise agreements. It protects Cream from unintended legal consequences due to franchisees adding conditions to their payments. Franchisees should be aware that any attempt to use legends or endorsements to modify their obligations to Cream will be nullified, as Cream has the explicit right to remove such notations.