What must Cream franchisees obtain approval for before signing a lease?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
After the site of your Premises is approved by us, but before you execute any lease, sublease, or other document to secure occupancy rights (the "Lease") for the Premises, you must engage our approved or designated architect to develop detailed design and construction plans for your Shop that comply with any design specifications or prototypical plans provided by us and all applicable ordinances, building codes, permit requirements, and lease requirements and restrictions (your "Construction Plans"). You must obtain our approval of your Construction Plans before you sign the Lease. We must also approve your Lease before you sign it. You must obtain our approval of a site that will be your Premises and secure possession of the site under the terms of a Lease we have approved within 120 days of the date of signing your Franchise Agreement. If you fail to satisfy any of these deadlines, we may terminate your Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a prospective franchisee must secure approval for both their Construction Plans and the Lease itself before signing any lease, sublease, or other document to secure occupancy rights for the premises. Cream mandates that franchisees engage an approved or designated architect to develop detailed design and construction plans that comply with Cream's design specifications, prototypical plans, and all applicable ordinances, building codes, permit requirements, and lease requirements and restrictions. These plans are referred to as the "Construction Plans," and Cream's approval is required before the franchisee signs the lease.
Cream also requires approval of the lease agreement itself before it is signed. This ensures that the terms of the lease are acceptable to Cream and align with their brand standards and operational requirements. The franchisee must obtain Cream's approval of a site that will be their Premises and secure possession of the site under the terms of a Lease Cream has approved within 120 days of the date of signing the Franchise Agreement.
Failure to meet these deadlines may result in the termination of the Franchise Agreement. This requirement protects Cream by ensuring that the location and construction of each franchise align with their overall brand strategy and operational standards. It also helps to mitigate potential risks associated with unfavorable lease terms or non-compliant construction, which could negatively impact the franchisee's business and Cream's reputation.