What is the effective date of a waiver of obligation or restriction granted by Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you may, by written instrument, unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights we or you have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of 10 days' prior written notice.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a waiver or reduction of any obligation or restriction can be issued unilaterally by Cream or the franchisee through a written instrument. The waiver becomes effective either upon the delivery of written notice to the other party or on another effective date specifically stated in the waiver notice.
This means that Cream has the flexibility to modify the terms of the franchise agreement, and the franchisee needs to pay close attention to any such notices. The effective date is not fixed but is determined by the terms of the waiver notice itself. This could be immediate upon receipt, or at a later date specified in the notice.
It's also important to note that any waiver granted is not permanent. Cream retains the right to revoke the waiver at any time, for any reason. To do so, Cream must provide 10 days' prior written notice to the franchisee. This ensures that while a franchisee might receive some temporary relief or altered obligations, Cream can reinstate the original terms with a relatively short notice period. This condition emphasizes the importance of franchisees maintaining open communication with Cream to understand the potential implications of any waivers and the circumstances under which they might be revoked.