Can a Cream franchisee contest the validity of any registration for the Marks or the System during or after the term?

According to the 2025 FDD, Cream franchisees are prohibited from contesting the validity of any registration for the Marks or the System, both during and after the term of the franchise agreement. The Marks and the System are owned by Cream and/or its affiliates. The agreement specifies that any use of the Marks and the System, including any goodwill established, is exclusively for the benefit of Cream and its affiliates. The franchise agreement does not grant the franchisee any goodwill or other interests in the Marks or the System, other than the right to operate the Shop under the agreement.

Unauthorized use of the Marks and the System by a Cream franchisee constitutes a breach of the agreement and an infringement on Cream's intellectual property rights. Such unauthorized use will cause irreparable harm to Cream and its affiliates, entitling them to injunctive relief. All provisions of the agreement relating to the Marks and the System apply to any additional or modified components of the Marks and the System that Cream authorizes the franchisee to use.

This clause is fairly standard in franchising. Franchisors like Cream need to protect their trademarks and brand identity. Allowing individual franchisees to challenge the validity of the trademarks would create legal risks and potential damage to the entire franchise system. Prospective franchisees should understand that they are licensing the use of Cream's brand and system, not acquiring any ownership rights in them.