factual

What actions must a Cream franchisee take regarding the lease of the premises before transferring the franchise?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (6) if the proposed transfer requires notice to or approval from the landlord of the Premises, or any other action under the terms of the Lease, you have taken such appropriate action and delivered us evidence of the same;

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to the 2025 FDD, a Cream franchisee must take specific actions related to the lease of their premises before transferring the franchise. If the proposed transfer requires any notification or approval from the landlord, or any other action under the terms of the lease, the franchisee must take the appropriate action and provide evidence of this to Cream. This ensures that the transfer complies with the lease agreement and that the landlord is properly informed and consents to the transfer, if required.

This requirement protects Cream by ensuring that the franchise can continue operating at the location under the new franchisee. Failing to obtain necessary landlord approvals could jeopardize the franchise's location and operations. The franchisee bears the responsibility of managing the relationship with the landlord and fulfilling all lease obligations related to the transfer.

In practice, this means a Cream franchisee needs to carefully review their lease agreement to identify any clauses pertaining to assignment or subletting. They must then communicate with their landlord, complete any required paperwork, and obtain written consent if mandated by the lease. Providing Cream with evidence of these actions, such as a landlord's written approval, is a crucial step in the transfer process. This proactive approach helps ensure a smooth transition and avoids potential legal or operational issues.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.