factual

What constitutes an unauthorized transfer under Section 12 of the Cream franchise agreement?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

(9) you or any of your owners make or attempt to make an unauthorized transfer under Section 12;

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, making or attempting to make an unauthorized transfer under Section 12 of the franchise agreement can result in the termination of the agreement. This means that if a franchisee tries to transfer their rights or obligations without following the procedures and requirements outlined in Section 12, Cream has the right to terminate the franchise agreement.

This provision is significant for prospective franchisees because it underscores the importance of adhering strictly to the transfer protocols established by Cream. Transferring a franchise involves various legal and financial considerations, and franchisors like Cream want to ensure that any transfer aligns with their standards and protects the integrity of the brand.

For a potential Cream franchisee, this means carefully reviewing Section 12 of the franchise agreement to understand the specific conditions and procedures for transferring the franchise. It also highlights the need to seek legal counsel when considering a transfer to ensure full compliance and avoid potential termination of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.