For the Cream franchise, when are Royalty, Brand Fund Contributions, and other amounts due considered delivered when paid electronically?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All written notices, reports, and payments permitted or required to be delivered by this Agreement or the Brand Manual will be deemed to be delivered by the earlier of the time actually delivered, or as follows: (1) at the time delivered via electronic transmission and, in the case of the Royalty, Brand Fund Contributions, and other amounts due, at the time we actually receive electronic payment, (2) one business day after being placed in the hands of a nationally recognized commercial courier service for next business day delivery, or (3) three business days after placement in the United States Mail by Registered or Certified Mail, Return Receipt Requested, postage prepaid. Any notice must be sent to the party to be notified at its most current principal business address of which the notifying party has notice; except that, it will always be deemed acceptable to send notice to you at the address of the Premises. Any notice we send you by electronic means will be deemed delivered if it is delivered to the address of the Principal Owner listed on Attachment A, or any other email address your Principal Owner has notified us of, and/or any email address we issue your Principal Owner.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream considers Royalty, Brand Fund Contributions, and other amounts due as delivered at the time the company actually receives the electronic payment. This is in addition to the time when the payment was delivered via electronic transmission.
This means that for a Cream franchisee, simply sending an electronic payment is not enough to be considered 'delivered' on time. The payment must actually be received by Cream. This distinction is important because the timing of payments can affect compliance with the franchise agreement and potentially trigger late fees or other penalties.
In addition to electronic payments, the FDD states that all written notices, reports, and payments permitted or required to be delivered by the Franchise Agreement will be deemed to be delivered by the earlier of the time actually delivered, one business day after being placed in the hands of a nationally recognized commercial courier service for next business day delivery, or three business days after placement in the United States Mail by Registered or Certified Mail, Return Receipt Requested, postage prepaid. Any notice that Cream sends to the franchisee by electronic means will be deemed delivered if it is delivered to the address of the Principal Owner listed on Attachment A, or any other email address the Principal Owner has notified Cream of, and/or any email address Cream issues the Principal Owner.