For Cream franchises, besides claims arising from non-payment or underpayment, what is the deadline for commencing a judicial or arbitration proceeding related to the franchise agreement, the shop, or the relationship with Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you agree to be bound by the provisions of any applicable contractual or statutory limitations provision, whichever expires earlier. We and you further agree that, in any arbitration proceeding, each party must submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding. Any claim which is not submitted or filed as required will be forever barred. The arbitrator may not consider any settlement discussions or offers that might have been made by either you or us.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, both Cream and the franchisee agree to adhere to any applicable contractual or statutory limitations regarding the time frame for initiating legal proceedings. This means that the specific deadline for commencing a judicial or arbitration proceeding, aside from claims of non-payment or underpayment, will be determined by whichever contractual agreement or statute imposes the earliest deadline.
Furthermore, in any arbitration, both Cream and the franchisee are obligated to submit any claim that would be considered a compulsory counterclaim under Rule 13 of the Federal Rules of Civil Procedure within the same proceeding. Failure to do so results in the claim being permanently barred. This encourages all related issues to be resolved in a single arbitration, promoting efficiency.
This clause also specifies that any settlement discussions or offers made by either party cannot be considered by the arbitrator. This encourages open and honest negotiation without fear that these discussions will be used against them during the arbitration process. Franchisees should consult with a legal professional to fully understand the implications of these limitations and ensure compliance with all applicable deadlines.