If transferring any beneficial or ownership interest, must the transferee sign a guaranty for the Cream franchise?

According to Cream's 2025 Franchise Disclosure Document, if a transfer involves any beneficial or ownership interest in the franchise, the transferee(s) must sign Cream's current form of guaranty. This guaranty requires them to be personally bound, jointly and severally, by all provisions of the Franchise Agreement and any related ancillary agreements between the franchisee and Cream. Additionally, the transferee must provide an updated Attachment A.

This requirement ensures that Cream has recourse to the transferee's personal assets should the franchise default on its obligations. The joint and several liability means that each transferee is responsible for the entire debt, not just a portion. This is a standard practice in franchising to protect the franchisor's interests during ownership changes.

For a prospective Cream franchisee, this means that if they plan to transfer any part of their ownership, the person or entity acquiring that interest will need to sign a personal guaranty. This could have significant implications for the transferee's personal financial liability and should be carefully considered before proceeding with the transfer.