factual

Does the Cream franchise agreement confer rights or remedies to third parties?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor is a third-party beneficiary of the terms of this Rider, or any other terms of the Lease applicable to Franchisor's rights under the Lease, and as a result thereof, will have all rights (but not the obligation) to enforce the same.

The provisions of this Section are intended to benefit and bind certain third party nonsignatories. The provisions of this Section will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.

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

What This Means (2025 FDD)

According to the 2025 FDD, the Cream franchise agreement does address third-party beneficiaries in the context of the lease agreement for the premises. Specifically, the franchisor, Jeni's Splendid Ice Creams Franchise, LLC, is designated as a third-party beneficiary of the lease terms applicable to the franchisor's rights. This means that Cream has the right, but not the obligation, to enforce those terms. This provision ensures that Cream can protect its interests related to the operation of the Jeni's Ice Creams Scoop Shop at the premises.

Furthermore, the lease agreement includes acknowledgements and agreements from the landlord that directly benefit Cream. The landlord acknowledges the franchise relationship between the tenant (franchisee) and Cream, and agrees not to take actions that would prohibit the franchisee from operating the Jeni's Ice Creams Scoop Shop as contemplated by the Franchise Agreement. The landlord also consents to the collateral assignment of the tenant's interest in the lease to Cream, which secures the franchisee's obligations to Cream under the Franchise Agreement. These provisions provide Cream with additional security and control over the location of the franchise.

Additionally, the FDD states that a section of the franchise agreement is intended to benefit and bind certain third-party non-signatories. This section remains in effect even after the termination or expiration of the agreement. This indicates that certain provisions within the agreement are specifically designed to protect the interests of individuals or entities who are not directly party to the franchise agreement but have a vested interest in its terms and outcomes.

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.