What constitutes abandonment of a Cream shop that would allow Cream to terminate the agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) you abandon or fail to actively operate your Shop for more than 3 consecutive days of operation, or you provide us or any other party notice (written or oral) that you intend to permanently close or otherwise abandon the operation of your Shop;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream can terminate the franchise agreement if the franchisee abandons or fails to actively operate the shop. Specifically, this occurs if the franchisee does not actively operate the shop for more than 3 consecutive days of operation.
Additionally, Cream can terminate the agreement if the franchisee provides written or oral notice to Cream or any other party indicating their intention to permanently close or otherwise abandon the operation of their Cream shop. This clause protects Cream from franchisees who might attempt to close a location without formally terminating the agreement, which could harm the brand and its reputation.
This provision is fairly standard in franchise agreements, as consistent operation is crucial for maintaining brand presence and customer trust. Franchisees should be aware of this clause and ensure they have plans in place to maintain continuous operation, even during unforeseen circumstances, to avoid potential termination of their franchise agreement.