Does the Cream Guaranty include transfer requirements for the Guarantor?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) the transferee(s) must (if the transfer is any beneficial or ownership interest in you) (i) sign our then-current form of guaranty undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us, and (ii) provide us with an updated Attachment A;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream FDD, if a transfer involves any beneficial or ownership interest, the transferee(s) must sign Cream's current form of guaranty. This undertaking requires them to be personally bound, jointly and severally, by all provisions of the Franchise Agreement and any related ancillary agreements between the franchisee and Cream.
In addition to signing the guaranty, the transferee must provide Cream with an updated Attachment A. This attachment likely contains information about the transferee's ownership and financial status, ensuring Cream has current details on the individuals or entities assuming responsibility for the franchise.
These requirements ensure that Cream maintains a consistent level of financial security and control over its franchise operations, even when ownership changes. By requiring a personal guaranty and updated information, Cream aims to mitigate risks associated with new ownership and ensure the continued performance of the franchise agreement.