What is the consequence if the Cream Disclosure Document contains a material omission?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
If Jeni's Splendid Ice Creams Franchise, LLC does not deliver this Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency on Exhibit A.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if the document contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred. The FDD states that this should be reported to the Federal Trade Commission in Washington, D.C., as well as the appropriate state agency listed on Exhibit A.
This means that Cream is legally obligated to provide an accurate and complete FDD. A 'material omission' refers to the absence of information that is significant enough to influence a prospective franchisee's decision to invest in the franchise. This could include anything from hidden fees to inaccurate revenue projections.
For a prospective Cream franchisee, this clause provides a degree of protection. If you discover that the FDD was inaccurate or incomplete, you have the right to report it to the FTC and the relevant state agency. This could potentially lead to legal action against Cream and may help you recover any losses you incurred as a result of the misleading information. It is important to carefully review the FDD and related documents, and to seek legal counsel if you suspect any discrepancies or omissions.