Are Cream franchisees required to provide notices of customer complaints alleging violations of law?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
greement, or fail to reply to inquiries from us for more than fifteen (15) consecutive days; or (ii) fail to make progress towards your Development Schedule such that we determine, in our discretion, that satisfaction of your Development Schedule is impossible or impracticable;
(3) you or any of your owners are or have been convicted of or have pleaded no contest or guilty to a felony;
(4) you or any of your owners violate any of the covenants made in Section 3 of this Agreement;
(5) you or any of your owners make or attempt to make an unauthorized transfer under Section 4;
(6) you violate any law, ordinance, rule, or regulation of a governmental agency in connection with the exercise of your Development Rights, and fail to correct such violation within 72 hours after notice to you, whether from us or any other party;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
Based on the 2025 FDD, the provided excerpts do not explicitly state that Cream franchisees are required to provide notices of customer complaints alleging violations of law. However, the FDD does state that Cream can terminate the agreement if a franchisee violates any law, ordinance, rule, or regulation of a governmental agency in connection with the exercise of their Development Rights, and fails to correct such violation within 72 hours after notice to them, whether from Cream or any other party. This suggests that Cream franchisees are expected to comply with all applicable laws and regulations.
While the FDD does not directly address the specific requirement to report customer complaints alleging legal violations, it emphasizes adherence to System Standards and applicable laws. System Standards may regulate any aspect of the operation and maintenance of the Cream shop. Franchisees are responsible for the day-to-day management and operation of their shop and the implementation and maintenance of System Standards at their shop.
To fully understand a Cream franchisee's obligations regarding customer complaints and legal compliance, prospective franchisees should ask Cream about the specific procedures for handling and reporting such complaints. This includes clarifying whether franchisees must proactively notify Cream of customer complaints alleging violations of law and what documentation or reporting is required in such cases. Understanding these obligations is crucial for ensuring compliance and maintaining a positive relationship with the franchisor.