What constitutes an unauthorized transfer under Section 4 of the Cream Development Agreement, leading to potential termination?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement, effective upon delivery of written notice to you, if:
- (5) you or any of your owners make or attempt to make an unauthorized transfer under Section 4;
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 4 of the Development Agreement can result in the termination of the agreement.
While the excerpt indicates that unauthorized transfers under Section 4 are grounds for termination, it does not detail the specific conditions or actions that would constitute such a transfer. Section 4 likely outlines the approved procedures and requirements for transferring the Development Agreement or rights, and any deviation from these stipulations could be deemed an unauthorized transfer.
To fully understand what constitutes an unauthorized transfer, a prospective Cream franchisee should carefully review Section 4 of the Development Agreement within the FDD. It would be prudent to seek clarification from Cream regarding specific scenarios or actions that could be interpreted as unauthorized transfers to avoid potential breaches of contract and subsequent termination.