What is the Cream franchisee's recourse if they fail to cooperate with Cream in obtaining insurance on their behalf?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement, effective upon delivery of written notice to you, if:
- (7) you fail to maintain the insurance we require and do not correct the failure within 10 days after we deliver written notice of that failure to you;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, if a Cream franchisee fails to maintain the required insurance, Cream will deliver a written notice of the failure. If the franchisee does not correct the failure within 10 days after receiving the notice, Cream has the right to terminate the Franchise Agreement.
Cream's insurance requirements are considered minimum coverage to protect their interests, and Cream is not responsible for losses exceeding the franchisee's insurance coverage. It is the franchisee's responsibility to obtain adequate insurance coverage for their shop based on their own investigation.
Cream also has the right to take actions and sign documents on behalf of the franchisee to correct deficiencies if the franchisee fails to act. The franchisee must reimburse Cream for all costs and expenses incurred in correcting such deficiencies, and the franchisee appoints Cream as their attorney-in-fact to take such actions and execute such documents.