Must a Cream franchisee operate their shop in compliance with food and safety laws?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You must secure and maintain in force throughout the Term all required licenses, permits, and certificates relating to the operation of your Shop and operate your Shop in full compliance with all applicable laws, ordinances, and regulations, including food and safety laws, construction, and accessibility laws, and data protection and PCI compliance standards. You are solely responsible for ascertaining what actions must be taken by you to comply with all such laws, orders, or regulations, and specifically acknowledge and agree that your indemnification responsibilities under Section 16.D apply to any claims alleging that you or your Shop have violated any such laws, orders, or regulations.
You agree to comply and assist us in our compliance efforts, as applicable, with any and all laws and regulations. Without limiting the foregoing, you agree to comply with our website privacy policy, as it may be amended periodically. You further agree to comply with any requests to return or
delete customer's personal information, whether requested by us or directly by the customer, as required by applicable data sharing and privacy laws.
Your Shop must adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, us, and the public. Promptly upon receipt, you agree to provide us a copy of any and all notices you receive from any person, entity, or governmental authority claiming that you (or your affiliates or representatives) have violated any laws, regulations, permits, licenses, agreements, or committed any other breach, default, or violation in connection with your Shop, including any default notices from any landlord or supplier, any violation notices from a health or safety regulatory board, and any customer complaints alleging violations of law, or which may otherwise adversely affect your operation or financial condition or that of your Shop.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must operate their shops in full compliance with all applicable laws, ordinances, and regulations. This explicitly includes food and safety laws, as well as construction and accessibility laws, and data protection and PCI compliance standards.
Cream franchisees are solely responsible for determining the actions needed to comply with all applicable laws and regulations. The franchisee also acknowledges that their indemnification responsibilities extend to any claims alleging violations of such laws or regulations by them or their shop. This means that if a Cream franchisee fails to comply with food safety laws and faces a claim, they are responsible for covering the associated costs and liabilities.
Furthermore, Cream franchisees must adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, Cream, and the public. Franchisees are required to promptly provide Cream with copies of any notices received from any entity or governmental authority claiming a violation of laws, regulations, permits, or licenses. This includes violation notices from health or safety regulatory boards and customer complaints alleging violations of law.
In summary, Cream places a strong emphasis on legal compliance and ethical conduct for its franchisees. Franchisees must proactively ensure they meet all legal requirements, particularly those related to food safety, and must promptly address any compliance issues that arise. Failure to do so can result in liability and potential damage to the Cream brand's reputation.