factual

What happens if any law requires more notice than the Cream franchise agreement requires?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

The following is added to the end of Sections 13.A and 14 of the Agreement:

However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of nonrenewal of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to the 2025 FDD, the Cream franchise agreement includes provisions to comply with Minnesota law regarding termination and nonrenewal notices. Specifically, if a Cream franchise is governed by Minnesota law, Cream will adhere to Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5. These statutes mandate that, except in certain specified cases, Cream must provide the franchisee with 90 days' notice of termination, including a 60-day period to cure any defaults, and 180 days' notice of nonrenewal of the franchise agreement.

This means that if Minnesota law requires a longer notice period for termination or nonrenewal than what is stipulated in the standard Cream franchise agreement, the Minnesota statutes will take precedence. This ensures that Cream franchisees in Minnesota receive the legally required minimum notice, providing them with additional time to address any issues leading to termination or to prepare for the nonrenewal of their franchise agreement.

For a prospective Cream franchisee in Minnesota, this is a beneficial provision as it offers greater protection and more time to react to potential termination or nonrenewal situations. It is important for franchisees to be aware of and understand their rights under both the franchise agreement and the applicable state laws to ensure compliance and to protect their investment. Franchisees should consult with a legal professional to fully understand their rights and obligations under Minnesota law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.