What constitutes a failure to comply with the Cream franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) you violate any law, ordinance, rule, or regulation of a governmental agency in connection with the exercise of your Development Rights, and fail to correct such violation within 72 hours after notice to you, whether from us or any other party;
- (7) you fail to pay us or our affiliates any amounts due and do not correct the failure within 10 days after written notice to you;
- (8) you (or any of your owners) (a) fail on three or more separate occasions within any 12 consecutive month period to comply with this Agreement, whether or not we notify you of the failures, and, if we do notify you of the failures, whether or not you correct the failures after our delivery of notice to you; or (b) fail on two or more separate occasions within any 12 consecutive month period to comply with the same obligation under this Agreement, whether or not we notify you of the failures, and, if we do notify you of the failures, whether or not you correct the failures after our delivery of notice to you;
- (9) you or any of your owners fail to comply with any other provision of this Agreement, and do not correct the failure within 30 days' notice to you; or
- (10) you or an affiliate fails to comply with any other agreement with us or our affiliate and do not correct such failure within the applicable cure period, if any.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, several actions can be considered a failure to comply with the franchise agreement. These include violating any law, ordinance, rule, or regulation related to the franchisee's Development Rights and failing to correct the violation within 72 hours after notice. Additionally, failing to pay Cream or its affiliates any due amounts and not correcting this failure within 10 days after written notice also constitutes non-compliance.
Furthermore, repeated failures to comply with the agreement can lead to termination. Specifically, if a franchisee (or any of their owners) fails to comply with the agreement on three or more separate occasions within a 12-month period, regardless of whether Cream provides notice or whether the franchisee corrects the failures, it is considered a breach. Similarly, failing to comply with the same obligation under the agreement on two or more separate occasions within a 12-month period, even if Cream does not provide notice or the franchisee corrects the failures, is also a breach.
Finally, failure to comply with any other provision of the agreement and not correcting the failure within 30 days' notice, or failing to comply with any other agreement with Cream or its affiliate and not correcting the failure within the applicable cure period, if any, are also grounds for considering the franchisee in default of the Cream franchise agreement.