What is the Cream franchisee's responsibility regarding the lease rider?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Tenant agrees that neither the Lease nor this Rider may be amended by the parties thereto without the prior written consent of Franchisor.
Landlord agrees to allow Tenant to use Franchisor's standard interior and exterior signage and designs to the maximum extent permitted by local governmental authorities.
Tenant will be provided, at Tenant's sole cost and expense, with a panel on any pylon/monument/directory sign for the development in which the Premises is located and will be permitted to install a standard sign thereon approved by Franchisor, including, without limitation, Franchisor's logo.
It will be a condition of the Lease being subordinated to any mortgage, deed of trust, deed to secure debt, or similar encumbrance on the Premises that the holder of such encumbrance agree not to disturb Tenant's rights under this Lease or Tenant's possession of the Premises, so long as Tenant is not in default of its obligations under the Lease and the Franchise Agreement, beyond an applicable grace or cure period.
(6) if the proposed transfer requires notice to or approval from the landlord of the Premises, or any other action under the terms of the Lease, you have taken such appropriate action and delivered us evidence of the same;
(11) you provide us the evidence we request to show that appropriate measures have been taken to effect the transfer as it relates to the operation of your Shop, including transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new business licenses, insurance policies and material agreements, each in accordance with our System Standards.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, a Cream franchisee has several responsibilities regarding the lease rider. The franchisee, as the tenant, must allow Cream to use its standard interior and exterior signage and designs, provided it is within the limits of the local government. The franchisee is also responsible for the cost of a panel on any pylon/monument/directory sign for the location and must install a standard sign approved by Cream, including Cream's logo. The franchisee must also ensure that the lease is subordinate to any mortgage unless the mortgage holder agrees not to disturb the franchisee's rights as long as the franchisee is not in default of the lease and franchise agreement.
Furthermore, the Cream franchisee must agree that neither the lease nor the rider can be amended without Cream's prior written consent. The franchisee is responsible for taking appropriate action and providing evidence of such action to Cream if the proposed transfer requires notice to or approval from the landlord or any other action under the terms of the lease. This ensures Cream maintains control over the brand's image and location standards.
In the event of a transfer of the franchise, the franchisee must transfer all necessary business licenses, insurance policies, and material agreements, or obtain new ones, in accordance with Cream's System Standards. This ensures the continued smooth operation of the Cream location under new ownership, maintaining brand consistency and compliance. These stipulations in the lease rider are designed to protect Cream's interests and maintain uniformity across all franchise locations.