factual

After Cream approves the site, what must a franchisee do before executing any lease?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

Promptly after the site of your Premises is approved by us, and before you execute any lease, sublease, or other document to secure occupancy rights (the "Lease") for the Premises, you must engage our approved or designated architect to develop detailed design and construction plans for your Shop that comply with any design specifications or prototypical plans provided by us and all applicable ordinances, building codes, permit requirements, and lease requirements and restrictions, including those arising under the Americans with Disabilities Act or similar rules governing public accommodations for persons with disabilities, other applicable ordinances, building codes, permit requirements, and lease requirements and restrictions (your "Construction Plans"). We may require that you use suppliers we approve or designate to develop or review your Construction Plan.

You must obtain our approval of your Construction Plans before you sign the Lease. We must also approve your Lease before you sign it. Our approval of your Lease may be conditioned, among other things, on the lessor's agreement to certain provisions we require from time to time to protect our interests. Our current requirements are reflected in our form of lease rider attached as Attachment E. It is your sole responsibility to obtain a fully executed lease rider we have approved, without

modification, executed by you and the landlord. You must deliver an executed copy of your Lease and lease addendum to us within 10 days after execution. You must obtain our approval of your Lease and sign the Lease to secure occupancy rights to the Premises within 120 days of the Effective Date.

You acknowledge and agree that you have the sole responsibility to develop your Construction Plans and negotiate and execute your Lease. Any review or approval by us of your Construction Plans or Lease is for our sole benefit and indicates only that such Construction Plans and Lease satisfy our minimum requirements. You agree that you are not relying on our review and approval of your Construction Plans or Lease for your benefit. You further acknowledge that you have been advised to obtain the advice of your own professional advisors before you sign a Lease or any other legal documents, including permitting or licensing applications.

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

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, after Cream approves the site for the premises, a franchisee must engage Cream's approved or designated architect to develop detailed design and construction plans for the shop. These construction plans must comply with Cream’s design specifications or prototypical plans, as well as all applicable ordinances, building codes, permit requirements, and lease requirements, including those arising under the Americans with Disabilities Act. Cream may also require the franchisee to use suppliers they approve or designate to develop or review the Construction Plan.

Before signing the lease, the franchisee must obtain Cream's approval of the construction plans. Cream must also approve the lease before the franchisee signs it, and this approval may be conditional on the lessor's agreement to certain provisions that Cream requires to protect its interests. Cream's current requirements are reflected in their form of lease rider attached as Attachment E. It is the franchisee's responsibility to obtain a fully executed lease rider approved by Cream, without modification, and executed by both the franchisee and the landlord.

The franchisee must deliver an executed copy of the lease and lease addendum to Cream within 10 days after execution. The franchisee must obtain Cream's approval of the lease and sign the lease to secure occupancy rights to the premises within 120 days of the Effective Date. Cream's review or approval of the construction plans or lease is for their sole benefit and indicates only that such plans and lease satisfy their minimum requirements. The franchisee is advised to obtain the advice of their own professional advisors before signing a lease or any other legal documents, including permitting or licensing applications.

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.