Must a Cream franchisee obtain approval of their Lease before signing it?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
After the site of your Premises is approved by us, but before you execute any lease, sublease, or other document to secure occupancy rights (the "Lease") for the Premises, you must engage our approved or designated architect to develop detailed design and construction plans for your Shop that comply with any design specifications or prototypical plans provided by us and all applicable ordinances, building codes, permit requirements, and lease requirements and restrictions (your "Construction Plans"). You must obtain our approval of your Construction Plans before you sign the Lease. We must also approve your Lease before you sign it. You must obtain our approval of a site that will be your Premises and secure possession of the site under the terms of a Lease we have approved within 120 days of the date of signing your Franchise Agreement. If you fail to satisfy any of these deadlines, we may terminate your Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must obtain Cream's approval of their lease before signing it. After Cream approves the site for the premises, but before the franchisee executes any lease, sublease, or other document to secure occupancy rights (the "Lease") for the Premises, the franchisee must engage Cream's approved or designated architect to develop detailed design and construction plans for their shop that comply with any design specifications or prototypical plans provided by Cream and all applicable ordinances, building codes, permit requirements, and lease requirements and restrictions (the "Construction Plans").
The franchisee must obtain Cream's approval of their Construction Plans before signing the Lease. Cream must also approve the Lease before it is signed. The franchisee must obtain Cream's approval of a site that will be their Premises and secure possession of the site under the terms of a Lease Cream has approved within 120 days of the date of signing the Franchise Agreement. Failure to satisfy any of these deadlines may result in Cream terminating the Franchise Agreement.
This requirement ensures that the location and lease terms align with Cream's standards and business model. It also protects the franchisee from entering into a lease that might not be suitable for the Cream business. Franchisees should factor in the time required for Cream's approval when negotiating lease terms and plan their timeline accordingly to avoid potential delays or termination of the franchise agreement.