How many consecutive days of inactivity will trigger a breach of the Cream franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement, effective upon delivery of written notice to you, if:
(5) you abandon or fail to actively operate your Shop for more than 3 consecutive days of operation, or you provide us or any other party notice (written or oral) that you intend to permanently close or otherwise abandon the operation of your Shop;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchise agreements can be terminated if the franchisee abandons or fails to actively operate their shop for more than three consecutive days of operation. Additionally, if the franchisee provides written or oral notice that they intend to permanently close or abandon the operation of their shop, Cream may terminate the agreement.
This clause is significant for prospective franchisees as it highlights the importance of maintaining continuous operation of the Cream shop. Unforeseen circumstances that lead to closure for more than three days could result in the termination of the franchise agreement. This could include events such as equipment failure, staffing shortages, or supply chain disruptions.
It is important for a potential Cream franchisee to understand the implications of this clause and to have contingency plans in place to ensure continuous operation. This might include having backup equipment, cross-training staff, and establishing relationships with multiple suppliers. Franchisees should also clarify with Cream what constitutes "actively operate" to avoid any misunderstandings.