What is the deadline for completing the sale to the proposed buyer after Cream notifies the franchisee that it will not exercise its right of first refusal for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not complete the sale to the proposed buyer within 60 days after we notify you that we do not intend to exercise our right of first refusal, or if there is a material change in the terms of the sale (which you agree to tell us promptly), we or our designee will have an additional right of first refusal on the same terms as described above.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee wishes to sell their franchise, they must first offer Cream the right of first refusal. If Cream decides not to exercise this right, the franchisee has a limited time to complete the sale with their proposed buyer.
The FDD states that the franchisee must complete the sale to the proposed buyer within 60 days after Cream notifies the franchisee that it will not exercise its right of first refusal. This means the sale must be finalized, and all necessary documentation and transfers completed within this timeframe.
If the sale is not completed within this 60-day period, or if there is a material change in the terms of the sale, Cream reserves the right to exercise its right of first refusal again. This condition underscores the importance of adhering to the original terms of the offer and completing the sale promptly once Cream waives its initial right.