Does the Cream franchise agreement disclaim the representations made in the franchise disclosure document?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The preambles and attachments are a part of this Agreement, which together with this Agreement constitute our and your entire agreement relating to the matters contemplated hereby, and there are no other oral or written understandings or agreements between us and you, or oral or written representations by us, relating to the subject matter of this Agreement, the franchise relationship, or your Shop (any understandings or agreements reached, or any representations made, before this Agreement are superseded by this Agreement). Nothing in this or in any related agreement, however, is intended to disclaim the representations we made in the Franchise Disclosure Document that we furnished to you.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the franchise agreement does not disclaim the representations made in the Franchise Disclosure Document (FDD). The franchise agreement, along with its preambles and attachments, constitutes the entire agreement between Cream and the franchisee. The document explicitly states that nothing within the agreement is intended to disclaim the representations made by Cream in the FDD that was furnished to the franchisee. This means that a franchisee can rely on the information provided in the FDD as part of their decision-making process.
However, for franchisees in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin, there are additional protections. In these states, no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Cream or its representatives. This provision reinforces the importance of the FDD and ensures that franchisees in these states cannot inadvertently waive their rights based on information outside of the FDD.
Prospective franchisees should carefully review the entire franchise agreement and the FDD to understand their rights and obligations. It is also advisable to seek legal counsel to ensure a full understanding of the implications of the agreement, especially concerning representations made by Cream during the franchise sales process. This is particularly important in states with specific franchise laws that provide additional protections to franchisees.