What is the consequence if a Cream franchisee or their owners plead no contest to a felony?

According to Cream's 2025 Franchise Disclosure Document, if a franchisee or any of their owners pleads no contest or guilty to a felony, Cream has the right to terminate the Franchise Agreement. This termination is effective immediately upon delivery of written notice to the franchisee.

This clause is significant for potential Cream franchisees as it highlights the importance of maintaining a clean legal record. A felony conviction or plea, even if it's a 'no contest' plea, provides grounds for Cream to terminate the agreement. This could result in the franchisee losing their investment and the right to operate the franchise.

It is important to note that this termination clause applies not only to the franchisee but also to any of their owners. Therefore, prospective franchisees should carefully consider the backgrounds of all individuals involved in the ownership of the franchise. Franchisees should seek legal counsel to fully understand the implications of this clause and to ensure they are in compliance with all applicable laws and regulations.