What constitutes an unauthorized transfer under Section 4 that could lead to termination of Cream Development Rights?
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, Cream may terminate the Area Development Agreement if a franchisee or any of their owners makes or attempts to make an unauthorized transfer under Section 4 of the agreement.
Section 4 likely outlines the specific procedures and conditions required for any transfer of the Development Rights. Since the excerpt does not specify what these conditions are, it is important to review Section 4 of the Area Development Agreement to understand what constitutes an unauthorized transfer.
Prospective Cream franchisees should carefully review Section 4 of the Area Development Agreement to fully understand the requirements for transferring their Development Rights and the potential consequences of failing to comply with those requirements. Franchisees should also consult with a legal professional to ensure they fully understand their rights and obligations under the Area Development Agreement.