What lease term is required for the premises to be approved for a Cream franchise renewal?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
When this Agreement expires, you may renew your franchise to operate your Shop for two successive terms of 5 years each, if you meet the following conditions:
- (3) you maintain possession of the Premises pursuant to a Lease we have approved, which must have a Lease term no less than the full term of the renewal franchise;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream requires that to renew a franchise, the franchisee must maintain possession of the premises under a lease that Cream has approved. The lease term must be no less than the full term of the renewal franchise. The Cream franchise agreement allows for two successive renewal terms of 5 years each. Therefore, the lease must be for a minimum of 5 years to cover the full term of the renewal franchise.
This condition ensures that Cream franchisees have secure tenure at their location for the duration of the renewal term. Without this requirement, a franchisee could face the risk of losing their location during the franchise term, which would severely impact their business. By mandating a lease term equal to the renewal term, Cream aims to provide stability and protect the franchisee's investment.
Prospective franchisees should carefully review their lease agreements to ensure they meet this requirement. It is also important to communicate with Cream during the lease negotiation process to ensure that the lease terms are acceptable to the franchisor. Failing to meet this lease term requirement could prevent a franchisee from being able to renew their franchise agreement.