What must a Cream franchisee do upon receiving a notice claiming a violation of laws or regulations?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee must promptly provide Cream with a copy of any notices they receive from any person, entity, or governmental authority. This includes notices claiming that the franchisee, their affiliates, or representatives have violated any laws, regulations, permits, licenses, or agreements related to their Cream shop.
This obligation extends to various types of notices, such as default notices from landlords or suppliers, violation notices from health or safety regulatory boards, and customer complaints alleging violations of law. The purpose is to ensure Cream is informed of any issues that could adversely affect the operation or financial condition of the franchise or the Cream brand.
This requirement is part of the broader expectation that Cream franchisees will operate their shops in compliance with all applicable laws, ordinances, and regulations, including food and safety laws, construction and accessibility laws, and data protection and PCI compliance standards. Franchisees are responsible for understanding and adhering to these legal requirements and acknowledge that they are responsible for any claims alleging violations of such laws under the indemnification responsibilities outlined in Section 16.D of the franchise agreement.