Can Cream decide not to purchase the Shop after the purchase price is determined?

According to Cream's 2025 Franchise Disclosure Document, Cream retains the right to decide against purchasing a shop even after the purchase price has been determined. Specifically, the closing of the purchase, which is scheduled within 90 days after the purchase price is determined, can be preempted by Cream's decision not to proceed with the purchase of the shop and/or the premises.

This clause in the franchise agreement provides Cream with significant flexibility. It means that even after investing in the appraisal process to determine the shop's value, Cream can still opt out of the purchase. This could occur for various reasons, such as a change in Cream's strategic direction, a reassessment of the shop's value, or unforeseen circumstances that make the purchase less attractive.

For a prospective franchisee, this represents a degree of uncertainty. While the franchisee may anticipate a sale of their shop to Cream upon termination or expiration of the agreement, Cream is not obligated to complete the purchase. Therefore, franchisees should carefully consider this clause and its potential implications for their exit strategy and financial planning. It is advisable to seek legal counsel to fully understand the risks and potential outcomes associated with this provision.