Are Cream's inspection remedies in addition to other rights and remedies under the Agreement and applicable law?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
If we determine after any inspection of your Shop that one or more failures of System Standards exist, we may re-inspect your Shop one or more times thereafter to evaluate whether such failures have been cured and/or conduct any other follow-up review that we deem is necessary. You must reimburse all of our costs associated with any failed inspection and all re-inspections and follow-up visits, including supplier fees, travel expenses, room and board, and compensation of our representatives and designees. These remedies are in addition to our other remedies and rights under this Agreement and applicable law if you violate any System Standards.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream's remedies related to inspections for System Standards failures are in addition to any other remedies and rights Cream has under the Franchise Agreement and applicable law. This means that if a Cream franchisee fails to meet System Standards, Cream can take various actions to address the failure, and these actions do not limit any other legal or contractual rights Cream may have.
Specifically, if Cream determines after an inspection that a franchisee is not meeting System Standards, Cream can re-inspect the shop as many times as deemed necessary to evaluate whether the failures have been corrected. The franchisee is responsible for reimbursing Cream for all costs associated with the failed inspection, re-inspections, and follow-up visits. These costs can include supplier fees, travel expenses, room and board, and compensation for Cream's representatives and designees.
This provision underscores the importance of adhering to Cream's System Standards and the potential financial burden of failing to do so. Franchisees should be aware that non-compliance can lead to multiple inspections at their expense, in addition to any other penalties or legal actions Cream might pursue under the Franchise Agreement or applicable law.