factual

If a Cream franchisee is conducting business as an individual and dies, who is responsible for appointing a manager for the shop?

Cream Franchise · 2025 FDD

Answer 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 of a franchisee operating as an individual, the responsibility for appointing a Shopkeeper falls to the deceased's executor, administrator, conservator, guardian, or other personal representative. This representative must appoint a Cream-approved Shopkeeper who has completed Cream's Initial Training Program within 15 days of the franchisee's death. This Shopkeeper will then supervise the daily operations of the Cream shop.

If the shop is not being managed properly following the franchisee's death, Cream has the right, but not the obligation, to step in and operate the shop on an interim basis or appoint a third party to do so. This ensures the continued operation of the Cream location and adherence to Cream's standards during the transition period.

This requirement ensures that Cream maintains its brand standards and operational consistency even in the event of a franchisee's death. The 15-day window to appoint a Shopkeeper places a time-sensitive responsibility on the franchisee's estate to ensure a smooth transition. The personal representative will need to act quickly to find a Cream-approved manager to avoid Cream potentially intervening in the shop's operations.

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.