Does the Cream franchise agreement allow Cream to seek injunctive relief from any court of competent jurisdiction?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You cannot consent to us obtaining injunctive relief. You may seek injunctive relief. See Minnesota Rule 2860.4400(J). Also, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream Franchise Disclosure Document, the ability of Cream to obtain injunctive relief may be limited based on specific state laws. For instance, the FDD states that in Minnesota, a franchisee cannot consent to Cream obtaining injunctive relief, but the franchisee may seek injunctive relief. A court will determine if a bond is required. This indicates that while Cream may generally seek injunctive relief, the franchisee's consent to such relief is not guaranteed, and a court will ultimately decide based on the specific circumstances and applicable laws.
This condition is particularly important for prospective Cream franchisees in Minnesota, as it clarifies their rights regarding injunctive relief. It ensures that franchisees cannot be forced to consent to an injunction and retains their right to seek such relief themselves. The added provision about the court determining the necessity of a bond provides an additional layer of protection, ensuring that the process is fair and legally sound.
For franchisees in other states, the standard terms of the franchise agreement would likely apply unless state-specific addenda modify those terms. Therefore, it is crucial for potential Cream franchisees to carefully review the FDD, including any state-specific provisions, to fully understand their rights and obligations regarding injunctive relief and other legal remedies.