What happens if a Cream developer or affiliate fails to comply with any other agreement with Cream or its affiliate?

According to the 2025 FDD, if a Cream developer or their affiliate fails to comply with any other agreement they have with Cream or its affiliate, the developer must correct the failure within the applicable cure period, if any exists. If the failure is not corrected within this time frame, it can lead to consequences under the Development Agreement.

This provision is significant for prospective Cream developers because it highlights the importance of adhering to all agreements with Cream and its affiliates, not just the Development Agreement itself. The term 'applicable cure period' suggests that the specific amount of time a developer has to correct a failure may vary depending on the agreement that was violated. It is the developer's responsibility to understand the terms of all agreements and ensure compliance to avoid potential default.

Failure to comply and correct the issue within the cure period could result in Cream terminating the Development Agreement. Upon termination of the Development Agreement, the developer must cease operating as a Cream developer, return or destroy confidential information, comply with wind-down standards, and pay all outstanding amounts owed to Cream. Additionally, the developer is subject to a covenant not to compete for two years after termination within the Development Area or within a 5-mile radius of any other Cream location.