Can Cream delegate its obligations to third-party designees who are either agents or independent contractors?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to delegate the performance of any portion or all of our obligations under this Agreement to third-party designees, whether these designees are our agents or independent contractors with whom we have contracted to perform these obligations.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream retains the right to delegate its responsibilities under the Franchise Agreement to third-party designees. These designees can be either agents or independent contractors with whom Cream has agreements to fulfill these obligations. This delegation does not require the franchisee's consent.
For a prospective franchisee, this means that Cream may outsource certain support functions, training programs, or other services outlined in the agreement to external parties. While Cream is still ultimately responsible for ensuring these obligations are met, the actual performance may be carried out by individuals or companies not directly employed by Cream.
This arrangement is fairly common in franchising, allowing Cream to leverage specialized expertise or achieve economies of scale. However, it's important for franchisees to understand that their direct point of contact for certain services may be a third party rather than Cream itself. Franchisees should confirm that these third-party designees are qualified and capable of delivering the expected level of support and service. Franchisees should also confirm that Cream remains accountable for the actions and performance of its designees.