Does the Cream franchise agreement prohibit franchisees from associating with individuals or entities that assist, sponsor, or support terrorists or acts of terrorism?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby represent and warrant to us, as an express consideration for the franchise granted hereby, that neither you nor any of your owners, employees, agents, or representatives, nor any other person or entity associated with you, is now, or has been:
(2) A person or entity who assists, sponsors, or supports terrorists or acts of terrorism, or is owned or controlled by terrorists or sponsors of terrorism.
You further represent and warrant to us that you and your owners are now, and have been, in compliance with U.S. anti-money laundering and counter-terrorism financing laws and regulations, and that any funds provided by you or your owners to us or our affiliates are and will be legally obtained in compliance with these laws. You agree not to, and to cause all of your owners, employees, agents, representatives, and any other person or entity associated with you not to, during the Term, take any action or refrain from taking any action that would cause such person or entity to become a target of any such laws and regulations.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the Cream franchise agreement includes clauses that address associations with terrorists or entities supporting terrorism. As an express consideration for the franchise, Cream requires franchisees to represent and warrant that neither they, nor their owners, employees, agents, representatives, or any person or entity associated with them, are a person or entity who assists, sponsors, or supports terrorists or acts of terrorism, or is owned or controlled by terrorists or sponsors of terrorism.
Cream also requires franchisees to represent and warrant that they and their owners are in compliance with U.S. anti-money laundering and counter-terrorism financing laws and regulations. Furthermore, franchisees must ensure that any funds provided to Cream or its affiliates are legally obtained in compliance with these laws.
During the term of the agreement, franchisees must not take any action or refrain from taking any action that would cause them or any associated person or entity to become a target of such laws and regulations. This means a Cream franchisee must actively avoid any association with individuals or groups involved in terrorism or face potential legal and financial repercussions, including potential termination of the franchise agreement.