What is the consequence if a Cream franchisee does not obtain lawful possession of approved premises by the deadline?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement, effective upon delivery of written notice to you, if:
(1) you or any of your owners have made or make any material misrepresentation or omission in acquiring the rights under this Agreement or in operating your Shop;
- (2) you do not obtain lawful possession of a Premises we have approved and deliver to us a fully executed copy of the Lease and lease addendum we have approved for such Premises, in each case by the deadline set forth in Section 2.B;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream can terminate the Franchise Agreement if the franchisee fails to obtain lawful possession of an approved premises by the deadline outlined in Section 2.B of the agreement. This means that if a franchisee does not secure the necessary legal rights to occupy and use the agreed-upon location for their Cream shop and provide a fully executed lease and lease addendum approved by Cream by the specified date, Cream has the right to end the franchise relationship.
This provision is significant for prospective franchisees as it emphasizes the importance of adhering to the timelines set forth in the franchise agreement. Securing a suitable location and fulfilling all lease-related obligations are critical steps in establishing a Cream franchise. Failure to meet these deadlines can result in the termination of the agreement, potentially leading to a loss of investment and the inability to operate the franchise.
Franchisees should pay close attention to Section 2.B of the Franchise Agreement to understand the specific deadlines and requirements for obtaining lawful possession of the premises. It is also advisable to maintain open communication with Cream throughout the site selection and leasing process to ensure compliance with all requirements and to address any potential delays or issues promptly. This proactive approach can help mitigate the risk of termination due to failure to meet the stipulated deadlines.