Does the Cream franchisee need consent to change the Principal Owner?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You must identify on Attachment A one of your owners who is a natural person and who will have authority and signatory power on behalf of you (the "Principal Owner"). You must obtain our written consent prior to changing the Principal Owner and agree to deliver to us a revised Attachment A to accurately identify the Principal Owner should the identity of that person change during the Term as permitted hereunder. You agree that the Principal Owner is authorized, on your behalf, to deal with us in respect of all matters whatsoever which may arise in respect of this Agreement. Any decision made by the Principal Owner will be final and binding upon you, and we will be entitled to rely solely upon the decision of the Principal Owner in any such dealings without the necessity of any discussions with any other person, and we will not be held liable for any actions taken by you or otherwise, based upon any decision or actions of the Principal Owner. You represent and agree that the person acting as your Principal Owner has full power and authority to enter into this Agreement and any other documents to which you are a party, and to make binding decisions on your behalf.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, a Cream franchisee must obtain written consent from Cream before changing the Principal Owner. The Principal Owner is the individual identified on Attachment A of the franchise agreement who has the authority to act on behalf of the franchisee.
Cream requires this consent to ensure that the designated individual is authorized to manage the franchise and make binding decisions. The FDD states that any decision made by the Principal Owner will be final and binding upon the franchisee, and Cream will rely solely on the Principal Owner's decisions without needing to consult with any other person. Cream will not be held liable for any actions taken based on the Principal Owner's decisions.
This requirement ensures that Cream has a clear point of contact with full authority to manage the franchise. It also protects Cream from potential disputes or liabilities arising from unauthorized individuals making decisions on behalf of the franchisee. The franchisee must also provide a revised Attachment A to accurately reflect the new Principal Owner.