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What laws, regulations, and guidance must a Cream franchisee comply with regarding Restricted Data?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

at we or our affiliates may auto debit your Transfer Account for such amounts in the same manner and using the same authorization that you grant us with respect to payment of Royalty Fees and other fees.

G. COMPLIANCE WITH LAWS AND GOOD BUSINESS PRACTICES.

You must secure and maintain in force throughout the Term all required licenses, permits, and certificates relating to the operation of your Shop and operate your Shop in full compliance with all applicable laws, ordinances, and regulations, including food and safety laws, construction, and accessibility laws, and data protection and PCI compliance standards. You are solely responsible for ascertaining what actions must be taken by you to comply with all such laws, orders, or regulations, and specifically acknowledge and agree that your indemnification responsibilities under Section 16.D apply to any claims alleging that you or your Shop have violated any such laws, orders, or regulations.

You agree to comply and assist us in our compliance efforts, as applicable, with any and all laws and regulations. Without limiting the foregoing, you agree to comply with our website privacy policy, as it may be amended periodically. You further agree to comply with any requests to return or

delete customer's personal information, whether requested by us or directly by the customer, as required by applicable data sharing and privacy laws.

Your Shop must adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, us, and the public. Promptly upon receipt, you agree to provide us a copy of any and all notices you receive from any person, entity, or governmental authority claiming that you (or your affiliates or representatives) have violated any laws, regulations, permits, licenses, agreements, or committed any other breach, default, or violation in connection with your Shop, including any default notices from any landlord or supplier, any violation notices from a health or safety regulatory board, and any customer complaints alleging violations of law, or which may otherwise adversely affect your operation or financial condition or that of your Shop.

H.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

Based on the 2025 FDD, Cream franchisees must operate their shops in full compliance with all applicable laws, ordinances, and regulations, including data protection and PCI compliance standards. Franchisees are solely responsible for understanding and adhering to these laws and regulations. Cream franchisees must also assist Cream in its compliance efforts with all laws and regulations, including compliance with Cream's website privacy policy, as it may be amended.

A Cream franchisee must comply with requests to return or delete customer's personal information as required by applicable data sharing and privacy laws, whether requested by Cream or directly by the customer. Cream franchisees must also adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, Cream, and the public.

Upon receipt, a Cream franchisee must provide Cream a copy of any notices received from any person, entity, or governmental authority claiming that the franchisee has violated any laws, regulations, permits, licenses, or agreements in connection with their shop. This includes default notices from landlords or suppliers, violation notices from health or safety regulatory boards, and customer complaints alleging violations of law.

The FDD also states that all Confidential Information will be owned by Cream or its affiliates (other than Restricted Data, as defined in Section 8.K). However, the excerpt does not define "Restricted Data" or provide further details regarding Section 8.K. A prospective franchisee should seek clarification from Cream regarding the definition of Restricted Data and the specific obligations related to it.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.