factual

In the event of the death or disability of a Cream franchisee, who can appoint a representative for the Cream shop?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event of the death or disability of you (if you are conducting business as an individual) or your Principal Owner (if you are conducting business as an Entity), if your Shop is not otherwise being managed by a Shopkeeper, you or your Principal Owner's (as applicable) person's executor, administrator, conservator, guardian, or other personal representative must within a reasonable time, not to exceed 15 days from the date of death or disability, appoint a Shopkeeper who we approve and who has completed our then-current Initial Training Program to supervise the day-to-day operations of your Shop. If your Shop is not being managed properly at any time from and after the death or disability of you (if you

are conducting business as an individual) or your Principal Owner (if you are conducting business as an Entity), in our sole judgment, we may, but need not, operate the Shop on an interim basis (or appoint a third party to operate the Shop on an interim basis) in accordance with Section 14.D.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the responsibility of appointing a Shopkeeper falls upon specific individuals, depending on the business structure. If the franchisee operates as an individual, the executor, administrator, conservator, guardian, or other personal representative of the franchisee must appoint a Shopkeeper. If the franchisee operates as an entity, the executor, administrator, conservator, guardian, or other personal representative of the Principal Owner must appoint a Shopkeeper.

The appointed Shopkeeper must be approved by Cream and must have completed Cream's then-current Initial Training Program to supervise the day-to-day operations of the Cream shop. This appointment must occur within a reasonable time, not exceeding 15 days from the date of death or disability. This requirement ensures that the Cream shop continues to be managed according to Cream's standards, even in the franchisee's absence.

If the shop is not being managed properly following the death or disability, Cream retains the right, but not the obligation, to operate the shop on an interim basis or to appoint a third party to do so. This provision is in place to maintain the operational standards and protect the Cream brand. The franchisee or their estate remains responsible for all financial obligations unless Cream expressly assumes them in connection with purchasing the shop.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.