What happens if a Cream franchisee does not obtain lawful possession of an approved premises by the deadline?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement, effective upon delivery of written notice to you, if:
(2) you do not obtain lawful possession of a Premises we have approved and deliver to us a fully executed copy of the Lease and lease addendum we have approved for such Premises, in each case by the deadline set forth in Section 2.B;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream has the right to terminate the Franchise Agreement if the franchisee does not obtain lawful possession of an approved premises by the deadline. Specifically, Cream must deliver written notice to the franchisee to enact the termination. The franchisee must also deliver a fully executed copy of the lease and any lease addendum approved by Cream by the specified deadline.
This means that a prospective Cream franchisee must secure an approved location and finalize the lease agreement within the timeframe outlined in Section 2.B of the Franchise Agreement. Failure to do so gives Cream the right to end the agreement, which would prevent the franchisee from opening their Cream shop. This could result in the loss of any initial investments made in anticipation of opening the franchise.
It is important for potential Cream franchisees to understand the deadlines for site selection and lease execution, as well as the potential consequences of missing those deadlines. Franchisees should work closely with Cream to ensure that they meet all requirements and timelines to avoid termination of the agreement. Franchisees should clarify with Cream what recourse they may have if they are unable to take lawful possession of the premises by the deadline.