Is a Cream franchisee allowed to use written materials to advertise the transfer of their Development Rights without prior approval?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may review all information regarding your Development Rights that you give the transferee, correct any information that we believe is inaccurate, and give the transferee copies of any reports that you have given us or we have made regarding your Development Rights.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream retains the right to review all information regarding a franchisee's Development Rights that is provided to a potential transferee. Cream can correct any information it believes is inaccurate and provide the transferee with copies of any reports the franchisee has given Cream or that Cream has created regarding the Development Rights. This indicates that while franchisees can share information about their Development Rights with potential transferees, Cream maintains oversight and approval rights over the information conveyed.
This process protects Cream's brand and ensures that potential transferees receive accurate and consistent information. By retaining the right to review and correct information, Cream can prevent misrepresentations or misleading statements about the Development Rights. This is a common practice in franchising, as franchisors typically want to control the information disseminated about their brand and franchise opportunities.
For a prospective Cream franchisee, this means that while you can market the transfer of your Development Rights, you must be transparent with Cream and allow them to review all materials you provide to potential buyers. This may add an extra step to the transfer process, but it also provides an opportunity for Cream to support the transfer and ensure a smooth transition. Failure to comply with this requirement could potentially jeopardize the transfer or lead to other issues with Cream.