What happens if a Cream franchisee is in default of any obligation under the Franchise Agreement regarding Digital Presences?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement you and your owners must immediately: (1) cease conducting the business granted hereunder or holding yourself out to the public as being a developer of Jeni's Ice Creams Scoop Shops except as permitted under Franchise Agreements; (2) return to us or destroy (as we require) any and all Confidential Information (other than as used by you in connection with the operation of any Jeni's Ice Creams Scoop Shop under a Franchise Agreement with us); (3) comply with all other standards we establish from time to time (and all applicable laws) in connection with the wind-down of your business contemplated by this Agreement; and (4) without limiting any other rights or remedies to which we may be entitled, you must pay all amounts owing to us pursuant to this Agreement up to the date of termination.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
I am unable to provide information about the consequences for a Cream franchisee who defaults on obligations regarding digital presences, according to the 2025 Franchise Disclosure Document. While the document discusses termination and obligations upon termination, it does not specifically detail the repercussions for defaults related to digital presences. The FDD does outline general default scenarios and the brand's rights upon termination or expiration of the agreement.
Item 23 of the 2025 FDD for Cream discusses general rights and obligations upon termination or expiration of the agreement. It mentions that upon termination, franchisees must cease conducting business, return or destroy confidential information, and comply with all standards related to winding down the business. It also states that franchisees must pay all amounts owed to the company up to the date of termination. However, these obligations are broad and not specific to digital presence defaults.
To fully understand the consequences of defaulting on digital presence obligations, prospective Cream franchisees should ask the franchisor for specific details. This includes clarifying what constitutes a default related to digital presences, the specific steps Cream would take in such a situation, and any opportunities to correct the default before termination.