How long will the term of the new area development agreement be when transferring Cream Development Rights?

According to Cream's 2025 Franchise Disclosure Document, if a franchisee transfers their Area Development Agreement or Development Rights to a new party, the transferee must sign Cream's current form of area development agreement and related documents. The terms in this new agreement may differ significantly from the original agreement. However, the term of the new area development agreement will be equal to the remaining term and development schedule of the original agreement.

For a prospective Cream franchisee, this means that if you decide to transfer your development rights, the new franchisee will not receive a brand new, full-length agreement. Instead, they will inherit the remaining portion of your original term and development schedule. This could be a positive or a negative, depending on how much time is left on the original agreement and how aggressive the development schedule is.

It is important to note that Cream retains the right to modify the terms of the area development agreement. While the length of the term will remain the same, other provisions could change, potentially impacting the transferee's obligations and rights. A franchisee looking to transfer their development rights should carefully consider the implications of these changes and discuss them with Cream to fully understand the terms of the new agreement. This ensures that both the transferring and receiving parties are aware of their responsibilities and expectations under the new agreement.