factual

In the event of the death or disability of the Cream franchisee's Principal Owner, who is responsible for appointing a manager for the 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 the Principal Owner, the responsibility for appointing a Shopkeeper (manager) falls to the executor, administrator, conservator, guardian, or other personal representative of the Principal Owner. This representative must make the appointment within a reasonable timeframe, specifically no more than 15 days from the date of death or disability. The appointed Shopkeeper must be approved by Cream and must have completed the then-current Initial Training Program to supervise the day-to-day operations of the Cream shop.

This stipulation ensures that the Cream shop continues to operate under appropriate management even when the original owner is incapacitated or deceased. It also protects Cream's brand standards by requiring that the appointed manager is someone Cream approves and who has completed the necessary training.

If the shop is not being managed properly following the death or disability of the Principal Owner, 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 serves as a safeguard for Cream, allowing them to maintain the shop's operations and protect their brand's reputation if the franchisee's representative does not fulfill their responsibility in a timely manner.

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.