Does the Cream franchise agreement prevent Cream from seeking specific performance and injunctive relief for conduct that causes loss or damage to Cream, its affiliates, or the System?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement, including the provisions of Sections 7.E or 7.F, bars our right to obtain specific performance of the provisions of this Agreement and injunctive relief against any threatened or actual conduct that will cause us, our affiliates, or the System loss or damage, under customary equity rules, including applicable rules for obtaining restraining orders and temporary or preliminary injunctions. You agree that we may seek such relief from any court of competent jurisdiction in addition to such further or other relief as may be available to us at law or in equity. You agree that we will not be required to post a bond to obtain injunctive relief and that your only remedy if an injunction is entered against you will be the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by injunction being expressly waived hereby).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the Cream franchise agreement does not bar Cream's right to obtain specific performance and injunctive relief against any threatened or actual conduct that will cause loss or damage to Cream, its affiliates, or the System. This right is protected under customary equity rules, including those for obtaining restraining orders and temporary or preliminary injunctions.
For a prospective Cream franchisee, this means that Cream retains the ability to legally compel franchisees to adhere to the terms of the franchise agreement and to prevent actions that could harm the brand or the system. Cream can seek such relief from any court of competent jurisdiction, in addition to any other relief available at law or in equity.
Furthermore, the franchisee agrees that Cream will not be required to post a bond to obtain injunctive relief. The franchisee's sole remedy, if an injunction is entered against them, is the dissolution of that injunction if warranted upon due hearing, with all claims for damages by injunction being expressly waived.