What is Cream authorized to do with any legend or endorsement on a check?

According to Cream's 2025 Franchise Disclosure Document, Cream has the authority to remove any special or restrictive legend or endorsement on any check or similar item given to them by the franchisee. After removal, the legend or endorsement will have no effect.

This clause protects Cream from unintended legal consequences that might arise from accepting checks with restrictive endorsements. For example, a franchisee might attempt to settle a disputed amount by writing "payment in full" on a check for a lesser sum. By removing the endorsement, Cream preserves its right to pursue the full amount owed under the franchise agreement.

This is a fairly standard provision in franchise agreements. It ensures that the franchisor's acceptance of a payment does not automatically constitute a waiver of any rights or an agreement to settle for a lesser amount than what is owed. Franchisees should be aware of this provision and avoid attempting to use restrictive endorsements to resolve payment disputes with Cream.