What happens upon the death or disability of a Cream franchisee or their owners?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or disability of you (or if you are conducting business as an Entity, any of your owners), such person's executor, administrator, conservator, guardian, or other personal representative must transfer such person's interest in this Agreement, your Shop, or ownership interest in you, to a third party that we approve (which may be such person's heirs, beneficiaries, or devisees). That transfer must be completed within a reasonable time, not to exceed 180 days from the date of death or disability, and is subject to all of the terms and conditions in this Section 12, except that any transferee that is the spouse or immediate family member of the deceased will not have to pay the transfer fee described in Section 12.C(10) if the transfer meets all the other conditions in Section 12.C, and the transferee reimburses us for any costs we incur in connection with documenting and otherwise processing such transfer, including reasonable attorneys' fees. The term "disability" means a mental or physical disability, impairment, or condition that is reasonably expected to prevent or actually does prevent such person from fulfilling such person's respective duties under this Agreement, as applicable. 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–51)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee or their owners, the deceased's estate is required to transfer the interest in the Cream shop to an approved party within 180 days. This approved party can include heirs, beneficiaries, or devisees. If the transferee is a spouse or immediate family member, the transfer fee is waived, provided all other transfer conditions are met, and they reimburse Cream for any costs incurred during the transfer, including attorney's fees. Disability is defined as a mental or physical condition that prevents the person from fulfilling their duties under the Franchise Agreement.
If the Cream shop isn't managed by a Shopkeeper due to the death or disability, the personal representative has 15 days to appoint an approved Shopkeeper who has completed Cream's Initial Training Program to oversee daily operations. If the shop isn't managed properly after the death or disability, Cream has the option, but not the obligation, to operate the shop on an interim basis or appoint a third party to do so.
This provision ensures business continuity for Cream while providing a framework for the transfer of ownership in unforeseen circumstances. The 180-day window for transfer and the 15-day requirement for appointing a Shopkeeper are critical timelines franchisees and their families should be aware of. The waiver of the transfer fee for immediate family members is a beneficial provision, but it's important to note that all other transfer conditions must still be met. Cream's option to operate the shop on an interim basis provides a safety net, but it's not guaranteed.