Does the Cream franchisee need permission 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 Cream's 2025 Franchise Disclosure Document, a 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.
The FDD specifies that the franchisee must deliver a revised Attachment A to accurately identify the new Principal Owner if the identity of that person changes during the term of the agreement. Cream relies solely on the decisions of the Principal Owner in all matters related to the franchise agreement, without needing to consult with any other person involved with the franchise.
This requirement ensures that Cream has a single, authorized point of contact for each franchise location, streamlining communication and decision-making. It also allows Cream to maintain control over who is officially representing the franchise and making decisions on its behalf. Failing to obtain Cream's written consent before changing the Principal Owner would be a breach of the franchise agreement.