What happens if a Cream developer violates covenants made in Section 3 of the Development Agreement?

According to Cream's 2025 Franchise Disclosure Document, if a developer violates any of the covenants made in Section 3 of the Development Agreement, Cream has the right to terminate the agreement. This termination is effective immediately upon delivery of written notice to the developer.

This provision is significant for prospective Cream developers as it underscores the importance of adhering to all covenants outlined in Section 3 of the Development Agreement. Failure to comply with these covenants can result in the immediate termination of the agreement, potentially leading to a loss of development rights and any investments made up to that point.

It is crucial for potential developers to carefully review and understand all the covenants in Section 3 to ensure compliance and avoid the risk of termination. Seeking legal counsel to interpret these covenants may be a prudent step before entering into the Development Agreement with Cream.