Who is considered a third-party beneficiary of the terms of the Rider or any other terms of the Lease applicable to Franchisor's rights under the Lease for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Third-Party Beneficiary.
Franchisor is a third-party beneficiary of the terms of this Rider, or any other terms of the Lease applicable to Franchisor's rights under the Lease, and as a result thereof, will have all rights (but not the obligation) to enforce the same.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream is considered a third-party beneficiary of the terms of the Rider or any other terms of the Lease applicable to Cream's rights under the Lease. As a third-party beneficiary, Cream has all the rights, but not the obligation, to enforce the terms of the Rider or Lease that apply to its rights.
This means that Cream, as the franchisor, has the ability to ensure that the lease agreement between the franchisee (tenant) and the landlord is upheld according to the terms that protect Cream's interests. This could include aspects like signage, access to the premises, and the overall operation of the Cream shop.
For a prospective Cream franchisee, this clause offers some assurance that the franchisor has a legal standing to intervene and protect their brand standards and operational requirements, as outlined in the franchise agreement, through the enforcement of lease terms. However, it's important to note that Cream is not obligated to enforce these terms, so the franchisee should still be proactive in ensuring their lease terms are favorable and upheld.