What happens if a Cream developer fails to pay amounts due to Cream or its affiliates?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) you fail to pay us or our affiliates any amounts due and do not correct the failure within 10 days after written notice to you;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a developer fails to pay amounts due to Cream or its affiliates, it constitutes a breach of the development agreement. Specifically, the developer has a 10-day period after receiving written notice to correct the failure to pay. If the developer does not rectify the payment within this timeframe, it can lead to further action by Cream.
This failure to pay is listed as a cause for potential termination of the development agreement. If Cream terminates the agreement due to this breach, the developer must cease operating as a Cream developer, return or destroy confidential information, and pay all outstanding amounts owed to Cream up to the termination date.
Moreover, Cream retains the right to terminate or reduce the size of the development area, and/or terminate the territorial protections if the developer fails to comply with the development schedule. This includes the right for Cream and its affiliates to establish or operate a Cream shop in the developer's current or former area. This could significantly impact the developer's business, as Cream could then authorize other franchisees to operate in the area initially designated for the developer.