Is a Cream franchisee allowed to rely on Cream's review and approval of Construction Plans or Lease for their 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 explicitly prohibited from relying on Cream's review and approval of Construction Plans or Leases for their benefit. Cream states that the franchisee has the sole responsibility to develop their Construction Plans and negotiate and execute their Lease. Any review or approval by Cream of the Construction Plans or Lease is solely for Cream's benefit and indicates only that the plans and lease satisfy Cream's minimum requirements.
Cream advises franchisees to seek advice from their own professional advisors before signing a Lease or any other legal documents, including permitting or licensing applications. This reinforces the franchisee's responsibility to conduct their own due diligence and not rely on Cream's assessment. Cream emphasizes that its review and approval are for its own purposes and should not be interpreted as an indicator of success for the franchisee's business.
This policy is typical in franchising, where the franchisee is considered an independent business owner responsible for their own site selection and development. While Cream may offer guidance and approval, the ultimate responsibility and risk lie with the franchisee. This arrangement protects Cream from liability if a site or lease turns out to be unfavorable for the franchisee's business.