What is the duration of the period before requesting consent to transfer a Cream franchise during which no violations of agreements with Cream or its affiliates can occur?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) you and your owners have not violated any provision of this Agreement or any other agreement with us or our affiliates during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must be in compliance with all agreements for a specific period before requesting consent to transfer their franchise. Specifically, the franchisee and their owners must not have violated any provision of the Franchise Agreement or any other agreement with Cream or its affiliates during the 60-day period before requesting consent to the transfer.
This requirement ensures that the franchise is in good standing before a transfer is considered. It protects Cream by preventing the transfer of a franchise that is currently in violation of its agreements. This also includes ensuring that all financial obligations, such as royalties and brand fund contributions, are current, and all required reports and statements have been submitted.
For a prospective Cream franchisee, this means maintaining strict compliance with all agreements, including timely payments and submissions, is crucial, especially if they anticipate selling or transferring the franchise in the future. Failure to comply within this 60-day window could delay or prevent the transfer of the franchise. This is a fairly standard requirement in franchising, as franchisors typically want to ensure a smooth transition and protect the brand's reputation.