What is the look-back period for compliance with the Cream franchise agreement before a franchisee can give notice of election to acquire a successor franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) you and your owners have not violated any provision of this Agreement or any other agreement with us or our affiliates during both the 60-day period before you give us written notice of your election to acquire a successor franchise and on the date on which the term of the successor franchise commences, in full compliance with this Agreement including that you have paid all Royalties, Brand Fund Contributions, and other amounts owed to us, our affiliates, and third-party suppliers, and have submitted all required reports and statements;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, a Cream franchisee must be in compliance with the franchise agreement during a specific period before they can give notice of their intent to acquire a successor franchise. Specifically, the franchisee and their owners must not have violated any provision of the agreement or any other agreement with Cream or its affiliates during the 60-day period before giving written notice of their election to acquire a successor franchise.
Furthermore, compliance must extend to the date on which the term of the successor franchise commences. This includes being in full compliance with the agreement, having paid all royalties, brand fund contributions, and other amounts owed to Cream, its affiliates, and third-party suppliers, and having submitted all required reports and statements.
In practical terms, this means a Cream franchisee needs to ensure they are fully compliant with all aspects of the franchise agreement for at least 60 days before notifying Cream of their intention to renew, and they must maintain this compliance up to the start date of the new franchise term. Failure to meet these conditions could result in Cream denying the renewal of the franchise agreement.