factual

Does the non-interference clause for Cream extend beyond the term of the franchise agreement?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

During and after the Term, you and your owners agree not to (and to use each of your best efforts to cause each of your respective current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors and assigns not to) solicit, interfere, or attempt to interfere with our or our affiliates' relationships with any customers, franchisees, licensees, lenders, suppliers, or consultants.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, the non-interference clause extends beyond the term of the franchise agreement. Specifically, the FDD states that during and after the term, the franchisee and their owners must not solicit, interfere, or attempt to interfere with Cream's or its affiliates' relationships with customers, franchisees, lenders, suppliers, or consultants. This obligation extends to the franchisee's current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns.

This means that even after the franchise agreement expires or is terminated, the franchisee is still bound by the non-interference clause. This is a significant restriction, as it limits the franchisee's ability to engage with Cream's network, even after they are no longer a franchisee. The clause aims to protect Cream's relationships and goodwill, preventing former franchisees from leveraging their knowledge or contacts gained during the franchise term to harm the Cream business.

Continuing obligations such as non-interference are common in franchise agreements to protect the brand and its network. Prospective franchisees should carefully consider the implications of these clauses, as they can significantly impact their future business activities. It is advisable to seek legal counsel to fully understand the scope and enforceability of such provisions under applicable state laws.

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.