What must a Cream franchisee do regarding documents necessary to protect Cream's interests in the Marks and System?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to sign any documents and take any other action that, in the opinion of our and our affiliates' attorneys, are necessary or advisable to protect and maintain our and our affiliates' (as applicable) interests in the Marks and the System.
If we are unable for any reason, after reasonable effort, to secure your signature on any document needed in connection with the actions specified in this Section 5.C, you hereby irrevocably designate and appoint us and our duly authorized officers and agents as your agent and attorney in fact, which appointment is coupled with an interest and is irrevocable, to act for and on your behalf to execute, verify, and file any such documents and to do all other lawfully permitted acts to further the purposes of this Section 5.C with the same legal force and effect as if executed by you.
We agree to reimburse you for all damages and expenses that you incur in any trademark infringement proceeding disputing your authorized use of the Marks under this Agreement if you have timely notified us of, and comply with our directions in responding to, the proceeding. At our option, we and our affiliates and may control the defense of any proceeding arising from your use of the Marks under this Agreement. If we choose to control the defense of any such proceeding, we may choose our own legal counsel and other similar representatives, and we will not be liable to you or any of your affiliates or representatives for any costs or expenses incurred on the basis of any additional or separate legal counsel or similar representatives you or they retain.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must sign documents and take actions deemed necessary by Cream's attorneys to protect Cream's interests in its Marks and System. This includes actions related to any infringement, challenge, or claim against the Marks or System. Cream and its affiliates have the exclusive right to control any legal proceedings concerning the Marks or System.
If Cream is unable to obtain a franchisee's signature on necessary documents, the franchisee irrevocably designates Cream and its authorized officers as their agent and attorney to execute, verify, and file such documents. This designation is coupled with an interest and is irrevocable, allowing Cream to act on behalf of the franchisee to protect its interests.
Cream will reimburse the franchisee for damages and expenses incurred in trademark infringement proceedings if the franchisee has provided timely notification and complied with Cream's directions. Cream has the option to control the defense of any proceeding arising from the franchisee's use of the Marks, and may choose its own legal counsel, without liability for additional costs incurred by the franchisee for separate counsel.