In the event of the death or disability of a Cream franchisee, how long does the executor have to appoint a manager?
Cream Franchise · 2025 FDDAnswer 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 executor, administrator, conservator, guardian, or other personal representative has a limited time to appoint a Shopkeeper. Specifically, they must appoint a Shopkeeper within a reasonable time, but not exceeding 15 days from the date of death or disability. This 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 requirement applies if the Cream shop is not otherwise being managed by an already-approved Shopkeeper.
This requirement ensures that the Cream shop continues to operate under approved management even in unforeseen circumstances. If the executor fails to appoint a Shopkeeper within the specified timeframe or if the shop is not being managed properly, Cream has the right, but not the obligation, to step in and operate the shop on an interim basis or appoint a third party to do so. This intervention is designed to maintain the standards and reputation of the Cream brand.
It's important to note that even during any interim operation by Cream or its designee, the franchisee (or their estate) remains the owner of the shop and is responsible for all financial obligations, including accounts payable, lease obligations, and taxes, unless Cream expressly assumes these obligations in connection with purchasing the shop. This arrangement highlights the franchisee's ongoing financial responsibility even when they are unable to manage the shop directly due to death or disability.