Which limitations provision applies to Cream, the contractual or statutory, if they differ?

According to the 2025 FDD, Cream franchisees agree to be bound by the provisions of any applicable contractual or statutory limitations provision, whichever expires earlier. This means that if the contract between the franchisee and Cream has a limitation period for bringing claims that is different from the limitation period set by law (statute), the shorter of the two periods will apply.

This clause impacts a franchisee's ability to bring legal claims against Cream. For example, if the franchise agreement states that a franchisee must bring any claims within one year, but the relevant state law provides a two-year statute of limitations for similar claims, the one-year contractual limitation would govern. Conversely, if the contract allowed three years but the statute only allowed two, the two-year statutory limit would prevail.

This provision underscores the importance of a prospective Cream franchisee understanding both the terms of the franchise agreement and the relevant state laws regarding limitations periods. Franchisees should consult with legal counsel to fully understand their rights and obligations and to ensure they do not miss any deadlines for bringing potential claims.