Does Cream or the franchisee have the right to a jury trial in the event of a dispute?

According to Cream's 2025 Franchise Disclosure Document, both Cream and the franchisee waive their right to a jury trial. Item 23, section H, explicitly states this waiver. This means that any disputes arising from the franchise agreement or the relationship between Cream and the franchisee will not be resolved through a jury trial.

Instead, disputes are subject to the agreement to arbitrate as detailed in Section 7.E of the franchise agreement. This indicates that Cream prefers to resolve conflicts through arbitration rather than traditional court proceedings. Arbitration typically involves a neutral third party who hears both sides of the argument and makes a binding decision.

This waiver has significant implications for a prospective Cream franchisee. By signing the franchise agreement, the franchisee gives up the right to have a jury of their peers decide their case. While arbitration can be a faster and less expensive method of dispute resolution, it also limits the franchisee's legal options and potential for appeal. Franchisees should carefully consider this waiver and understand the differences between arbitration and jury trials before signing the agreement.

It is common for franchise agreements to include clauses that mandate arbitration and waive the right to a jury trial. This is often done to streamline dispute resolution and reduce legal costs for both parties. However, franchisees should be aware of their rights and consult with an attorney to fully understand the implications of these clauses.