What happens if a Cream franchise is not being managed properly after the death or disability of the franchisee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of the death or disability of you (if you are conducting business as an individual) or your Principal Owner (if you are conducting business as an Entity), if your Shop is not otherwise being managed by a Shopkeeper, you or your Principal Owner's (as applicable) person's executor, administrator, conservator, guardian, or other personal representative must within a reasonable time, not to exceed 15 days from the date of death or disability, appoint a Shopkeeper who we approve and who has completed our then-current Initial Training Program to supervise the day-to-day operations of your Shop. If your Shop is not being managed properly at any time from and after the death or disability of you (if you
are conducting business as an individual) or your Principal Owner (if you are conducting business as an Entity), in our sole judgment, we may, but need not, operate the Shop on an interim basis (or appoint a third party to operate the Shop on an interim basis) in accordance with Section 14.D.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, in the event of the death or disability of the franchisee (or the Principal Owner if the franchisee is an entity), if the Cream shop is not being managed by an approved Shopkeeper, the executor, administrator, conservator, guardian, or other personal representative must appoint one within 15 days of the death or disability. This Shopkeeper must be approved by Cream and have completed the then-current Initial Training Program to supervise the shop's daily operations.
If the Cream shop is not being managed properly after the death or disability, Cream has the option, but not the obligation, to operate the shop on an interim basis. Alternatively, Cream can appoint a third party to manage the shop temporarily. This intervention is based on Cream's sole judgment of whether the shop is being managed adequately.
This clause protects Cream's brand and operational standards during a difficult transition period. It ensures that the shop continues to function, even if the franchisee or Principal Owner is no longer able to manage it. For a prospective franchisee, this means that Cream has a contingency plan in place to maintain the business's viability in unforeseen circumstances, although it is not obligated to act.