For a Cream franchise, is the franchisee relying on the franchisor's review and approval of Construction Plans or the Lease for the franchisee's benefit?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
|---| | acknowledge that you have been advised to conduct your own independent investigation before | | | selecting any site for our approval. | |
TABLE OF CONTENTS
| You acknowledge and agree that you have the sole responsibility to develop your Construction | |
|---|---|
| Plans and negotiate and execute your Lease. Any review or approval by us of your Construction Plans | |
| or Lease is for our sole benefit and indicates only that such Construction Plans and Lease satisfy our | |
| minimum requirements. You agree that you are not relying on our review and approval of your | |
| Construction Plans or Lease for your benefit. |
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees are solely responsible for developing their Construction Plans and negotiating and executing their Lease. While Cream must approve the Construction Plans and Lease, this review is strictly for Cream's benefit to ensure the plans and lease meet their minimum requirements.
The FDD explicitly states that the franchisee is not relying on Cream's review and approval for their own benefit. Cream advises franchisees to seek advice from their own professional advisors before signing any leases or legal documents related to permitting or licensing applications.
This means that Cream franchisees bear the risk of ensuring their Construction Plans and Lease are suitable for their business needs and compliant with all applicable regulations. Franchisees should not assume that Cream's approval guarantees the suitability or legality of these documents for the franchisee's specific circumstances. It is common practice in franchising for franchisors to have approval rights over site selection, construction, and lease terms to maintain brand standards and protect their interests, but the ultimate responsibility for due diligence typically rests with the franchisee.