What lease term is required for the premises of a Cream franchise to be eligible for 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 franchisees to maintain possession of their premises under a lease that Cream has approved. To be eligible for renewal, the lease term must be no less than the full term of the renewal franchise. Cream offers two successive renewal terms of 5 years each, meaning the lease must cover at least 5 years to align with each renewal term.
This condition ensures that Cream franchisees have secure and stable locations for the duration of their franchise agreement and any renewals. Without a lease term that covers the renewal period, a franchisee could lose their location, disrupting their business and potentially harming the Cream brand.
Prospective franchisees should carefully review potential lease agreements to ensure they meet Cream's requirements for renewal. Franchisees should also seek approval from Cream on the lease to confirm it meets all necessary conditions. This proactive approach can help avoid issues when the time comes to renew the franchise agreement.