What constitutes abandonment of Development Rights for a Cream developer, potentially leading to termination?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement, effective upon delivery of written notice to you, if:
- (2) you abandon your Development Rights, which may include that you (i) notify us that you will no longer be exercising the Development Rights granted to you under this Agreement, or fail to reply to inquiries from us for more than fifteen (15) consecutive days; or (ii) fail to make progress towards your Development Schedule such that we determine, in our discretion, that satisfaction of your Development Schedule is impossible or impracticable;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream may terminate the Development Agreement if the developer abandons their Development Rights. This abandonment can be demonstrated in two ways. First, if the developer notifies Cream that they will no longer be exercising their Development Rights. Second, abandonment can be inferred if the developer fails to reply to inquiries from Cream for more than fifteen (15) consecutive days.
Another way a developer can be seen as abandoning their rights is if they fail to make progress towards their Development Schedule. If Cream determines, in its discretion, that the developer's failure to progress makes it impossible or impracticable to satisfy the Development Schedule, Cream can terminate the agreement.
These conditions highlight the importance of maintaining open communication with Cream and diligently pursuing the Development Schedule outlined in the agreement. A prospective Cream developer should carefully consider their ability to meet the required development milestones and maintain consistent communication with Cream to avoid potential termination of their Development Rights.