Does the indemnification obligation for Cream franchisees continue after the franchise agreement expires or terminates?

According to Cream's 2025 Franchise Disclosure Document, the indemnification obligations for franchisees and their owners continue after the franchise agreement's expiration or termination. These obligations remain in full effect, notwithstanding the expiration or termination, until they are fully satisfied or naturally expire.

This continuation of obligations extends to several key areas, including non-disparagement, non-competition, non-interference, confidentiality, information security, innovations, and indemnification. This means that even after the franchise agreement ends, the franchisee must continue to uphold these responsibilities.

For a prospective Cream franchisee, this implies a long-term commitment to certain standards and behaviors, even after the formal business relationship concludes. It is important to understand the scope and duration of each of these continuing obligations to fully grasp the post-termination responsibilities. Franchisees should carefully review the specific definitions and implications of these clauses within the franchise agreement to be aware of their enduring duties.

This type of clause is relatively standard in franchise agreements, designed to protect the Cream brand and its proprietary information, even after a franchisee exits the system. Franchisees should seek legal counsel to fully understand the implications of these continuing obligations and how they might affect their future business activities.