If a law requires more notice than the Cream franchise agreement, what action will be taken?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions are annexed to and form part of this Area Development Agreement if and only if, and in such case to the extent that: (a) your franchised business will be operated wholly or partly in Minnesota; and/or (b) you are either a resident of, domiciled in, or actually present in Minnesota.
- The following is added to the end of Section 5 of the Area Development 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).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the Cream franchise agreement includes a provision specific to Minnesota franchise operations. This provision states that if Minnesota law requires a longer notice period for termination (along with a period to cure the issue), Cream will adhere to the state law's requirements. Specifically, franchisees in Minnesota, except in certain specified cases, must be given 90 days' notice of termination with 60 days to cure the issue. This ensures that Cream complies with Minnesota Statute Sec. 80C.14, Subds 3, 4 and 5.
This means that for Cream franchisees operating in Minnesota, the standard termination clauses in the franchise agreement are superseded by the state's regulations regarding notice and cure periods. This offers Minnesota franchisees additional protection compared to the standard agreement terms.
Prospective Cream franchisees should be aware of this state-specific provision if they plan to operate in Minnesota, as it provides a more extended timeframe to address any issues that could lead to termination, allowing them more opportunity to rectify the situation and maintain their franchise agreement.