Is a Cream franchisee required to sign a general release of claims as a condition of franchise renewal?

According to Cream's 2025 Franchise Disclosure Document, franchisees are generally required to sign a general release of claims as a condition of franchise renewal. Specifically, to renew the franchise for two successive terms of 5 years each, the franchisee must agree to sign a general release of any and all claims against Cream and its related parties. This release must be in a form satisfactory to Cream, covering all potential claims except those that cannot be released or waived under applicable franchise statutes. This requirement is one of several conditions that must be met to acquire a successor franchise. Other conditions include providing written notice within a specified timeframe, maintaining compliance with the franchise agreement, maintaining possession of the premises, agreeing to remodel the shop as required, paying the renewal fee (50% of the then-current initial franchise fee), and not violating any agreements with Cream. Cream must also be offering franchises in the franchisee's geographic market at the time of renewal.

The general release covers a broad range of potential claims, including those against Cream's owners, affiliates, officers, directors, employees, agents, successors, and assigns. This means that by signing the release, the franchisee gives up the right to sue Cream for any past, present, or future issues related to the franchise agreement or the franchise relationship, except where prohibited by law. The FDD includes a sample general release agreement as Exhibit B-4, illustrating the scope and nature of the claims being released. This agreement explicitly states that the franchisee releases Cream from any and all claims, obligations, debts, proceedings, demands, causes of action, rights to terminate and rescind, liabilities, losses, damages, and rights of every kind and nature whatsoever, known or unknown, suspected or unsuspected, whether at law or in equity.

However, the FDD also notes some state-specific exceptions to this general release requirement. For example, in Maryland and Minnesota, any release required as a condition of renewal will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law or to the extent prohibited by the Minnesota Franchises Law, respectively. Similarly, Section 41 of the Illinois Franchise Disclosure Act voids any provision requiring a franchisee to waive compliance with Illinois franchise law. These state-specific provisions are annexed to the franchise agreement if the franchisee is a resident of or operates their franchised business in those states. Therefore, while Cream generally requires a release of claims for franchise renewal, franchisees should be aware of any state laws that may limit the scope or enforceability of such releases.