factual

What is the look-back period for compliance with the Cream franchise agreement before giving notice of renewal?

Cream Franchise · 2025 FDD

Answer 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 Cream's 2025 Franchise Disclosure Document, a franchisee's compliance with the franchise agreement is evaluated during a specific period before the renewal of the franchise. To be eligible for renewal, the franchisee and their owners must not have violated any provision of the Franchise 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. Additionally, compliance is assessed on the date the term of the successor franchise commences.

This means that Cream assesses compliance with the franchise agreement during the 60-day period leading up to the renewal notice and also on the exact date the new franchise term is set to begin. This evaluation includes ensuring that all royalties, brand fund contributions, and other amounts owed to Cream, its affiliates, and third-party suppliers have been paid. Furthermore, all required reports and statements must have been submitted.

For a prospective Cream franchisee, this highlights the importance of maintaining consistent compliance with all aspects of the franchise agreement, especially in the two months before the renewal notification and on the start date of the new term. Failure to comply during this period could result in the denial of the franchise renewal, regardless of their performance throughout the rest of the franchise term. This requirement ensures that franchisees are in good standing and up-to-date with all obligations at the time of renewal.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.