How long does Cream have to notify the franchisee of its intent to purchase the interest offered for sale?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may elect to purchase the interest offered for the price and on the terms and conditions contained in the offer, provided that: (1) we notify you or your selling owner(s) that we intend to purchase the interest within 60 days after we receive a copy of the offer and all other information we request; (2) we may substitute cash for any form of payment proposed in the offer (such as ownership interests in a privately-held entity); (3) we or our designee will be offered the same terms for any promissory notes or other deferred payments as those offered by the proposed buyer; (4) we will have an additional 90 days to prepare for closing after notifying you of our election to purchase; and (b) we must receive, and you and your owners agree to make, all customary representations and warranties given by the seller of the assets of a business or the ownership interests in any legal business entity.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has a right of first refusal if a franchisee wishes to transfer their interest. Cream has 60 days to notify the franchisee of its intent to purchase the interest offered for sale. This 60-day period begins after Cream receives a copy of the offer and all other information it requests from the franchisee.
Cream can substitute cash for any form of payment proposed in the offer, such as ownership interests in a privately-held entity. Cream or its designee will be offered the same terms for any promissory notes or other deferred payments as those offered by the proposed buyer. After notifying the franchisee of its election to purchase, Cream will have an additional 90 days to prepare for closing.
The franchisee and their owners must provide all customary representations and warranties given by the seller of the assets of a business or the ownership interests in any legal business entity. Cream has the unrestricted right to assign any or all of its rights under this section to a third party, who will then have the rights described in this section. If Cream does not exercise its right of first refusal, the franchisee may complete the sale to the proposed buyer on the original offer's terms, provided Cream approves the transfer and the franchisee and transferee comply with all conditions.