For a Cream franchise, what is the deadline to complete the sale to a proposed buyer after Cream notifies the franchisee that they do not intend to exercise their right of first refusal?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not complete the sale to the proposed buyer within 60 days after we notify you that we do not intend to exercise our right of first refusal, or if there is a material change in the terms of the sale (which you agree to tell us promptly), we or our designee will have an additional right of first refusal on the same terms as described above.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee has 60 days to complete the sale to a proposed buyer after Cream notifies them that they will not exercise their right of first refusal. This means that once Cream informs the franchisee of their decision to pass on the opportunity to purchase the franchise, the franchisee has a limited time frame to finalize the sale with the new buyer.
It is important to note that if the sale is not completed within this 60-day period, or if there are any material changes to the terms of the sale, Cream reserves the right to exercise their right of first refusal. This implies that the original terms of the offer must remain intact during this period, and any significant alterations could trigger Cream's renewed interest in purchasing the franchise themselves.
This stipulation ensures that Cream maintains control over who becomes a franchisee and that the terms of the sale remain consistent. For a prospective Cream franchisee looking to sell their franchise in the future, it is crucial to adhere to this 60-day deadline and avoid making any material changes to the sale agreement to prevent Cream from potentially intervening.