If Cream is unable to secure the Cream franchisee's signature on a document related to Innovations, what power does Cream have?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
f or restriction upon the other under this Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights we or you have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of 10 days' prior written notice.
We and you will not waive or impair any right, power, or option this Agreement reserves (including our right to demand exact compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before the Term expires) because of any custom or practice at variance with this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including any System Standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Jeni's Ice Creams Scoop Shops; the existence of franchise agreements for other Jeni's Ice Creams Scoop Shops which contain provisions different from those contained in this Agreement; or our acceptance of any payments due from you after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
The following provision applies if you or the franchise granted hereby are subject to the franchise registration laws in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin: No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (1) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (2) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
C.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
Based on the 2025 FDD, Cream retains all rights, powers, and options specified in the franchise agreement, even if a franchisee fails to sign a document related to innovations. Cream's rights are not waived due to the franchisee's refusal to sign or any custom or practice that deviates from the agreement's terms. This means Cream can still demand full compliance with all terms, conditions, and covenants, and can declare any breach a default, potentially leading to termination of the agreement before its expiration.
This provision protects Cream's interests by ensuring that franchisees cannot avoid their obligations simply by refusing to sign documents. It reinforces Cream's authority to enforce the franchise agreement and maintain its system standards. The FDD also states that no right, power, or option Cream has under the agreement will be impaired or waived due to any custom or practice at variance with the agreement's terms or Cream's failure to insist upon the franchisee's compliance.
Furthermore, the FDD specifies that any waiver must be in writing and can be revoked with 10 days' prior written notice. This ensures that any temporary flexibility Cream might offer does not permanently alter the terms of the agreement. This clause is common in franchise agreements to protect the franchisor's brand standards and operational consistency across all franchise locations.
In practical terms, a Cream franchisee cannot leverage a refusal to sign a document as a way to circumvent their obligations. Cream maintains the power to enforce the original agreement, ensuring that all franchisees adhere to the established standards and procedures. This protects the Cream brand and the interests of other franchisees who are in compliance.