What is the liability of multiple owners of Cream Development Rights?

According to Cream's 2025 Franchise Disclosure Document, if two or more people own Cream Development Rights, their obligations and liabilities to Cream are joint and several. This applies whether they are partners or joint venturers.

In practical terms, this means that Cream can pursue any one or all of the owners for the full amount of any debt or obligation. If one owner cannot pay, Cream can seek the full amount from the other owners. This is a significant risk for multiple owners, as each is fully responsible for the entire obligation, not just a portion.

This type of liability is common in franchising and business partnerships. It protects the franchisor by ensuring they can recover debts or enforce obligations regardless of the internal arrangements between the owners. Prospective Cream franchisees should carefully consider this aspect, especially when entering into a development agreement with multiple partners, and ensure they have agreements in place to allocate responsibilities and liabilities internally.