Does the Cream Franchise Agreement require the franchisee to notify Cream of any potential transfer of the franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
"Transfer" by franchisee ⎯ defined | Franchise Agreement – Section 12.B Area Development Agreement – Section 4.B | | (l) | Franchisor approval of transfer by | Franchise Agreement – Sections 12.B and 12.C | | | franchisee | Area Development Agreement – Sections 4.C and 4.D | | (m) | Conditions for franchisor approval of transfer | Franchise Agreement – Section 12.C | | | Provision | Section in Agreement | Summary | |-----|-------------------------------------------------------------------------------------|---------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Area Development Agreement – Section 4.C | You submit an application for transfer and provide all information we request; the transfer and transferee must satisfy our criteria; you and your owners must be in compliance with your agreements with us; you provide us the documents we request about the transfer; you must execute all documents we require, including a general release (subject to state law);
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–51)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Franchise Agreement requires franchisees to submit an application for transfer and provide all information Cream requests. Cream must approve any transfer of the franchise.
Before a transfer can be approved, the franchisee and its owners must be in compliance with all agreements with Cream. The franchisee must also provide Cream with all requested documents pertaining to the transfer and execute any documents Cream requires.
These conditions ensure that Cream maintains control over who operates its franchises and that any new franchisee meets Cream's standards. This protects the brand and the interests of other franchisees in the system. Franchisees should carefully review Section 12.C of the Franchise Agreement to fully understand the conditions for transfer approval.