How long does a Cream franchisee have to cure deficiencies found during quality assurance audits or inspections?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) you violate any law, ordinance, rule, or regulation of a governmental agency in connection with the exercise of your Development Rights, and fail to correct such violation within 72 hours after notice to you, whether from us or any other party;
- (7) you fail to pay us or our affiliates any amounts due and do not correct the failure within 10 days after written notice to you;
- (8) you (or any of your owners) (a) fail on three or more separate occasions within any 12 consecutive month period to comply with this Agreement, whether or not we notify you of the failures, and, if we do notify you of the failures, whether or not you correct the failures after our delivery of notice to you; or (b) fail on two or more separate occasions within any 12 consecutive month period to comply with the same obligation under this Agreement, whether or not we notify you of the failures, and, if we do notify you of the failures, whether or not you correct the failures after our delivery of notice to you;
- (9) you or any of your owners fail to comply with any other provision of this Agreement, and do not correct the failure within 30 days' notice to you; or
- (10) you or an affiliate fails to comply with any other agreement with us or our affiliate and do not correct such failure within the applicable cure period, if any.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees typically have 30 days to correct any failures to comply with the Franchise Agreement after receiving notice. However, there are exceptions to this general rule.
Specifically, if a Cream franchisee violates any law, ordinance, rule, or regulation related to their Development Rights, they only have 72 hours to correct the violation after receiving notice. Similarly, if a franchisee fails to pay amounts due to Cream or its affiliates, they have 10 days after written notice to correct the failure.
It's important to note that repeated failures to comply with the agreement can lead to termination, regardless of whether Cream provides notice or whether the franchisee corrects the failures after notice. This highlights the importance of consistent compliance with the franchise agreement to avoid potential termination.