Does the non-interference clause in the Cream franchise agreement apply after the termination of the franchise term?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
r licenses to others to operate any business for which ice cream, ice cream-based desserts or drinks, and/or other frozen desserts or drinks, or similar products represents more than 10% of the total gross revenue.
B. NON-INTERFERENCE.
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.
C.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the non-interference clause in the Cream franchise agreement extends beyond the termination of the franchise term. Specifically, the franchise agreement states that during and after the term, the franchisee and their owners must not interfere with Cream's relationships with its customers, franchisees, lenders, suppliers, or consultants. This obligation extends to the franchisee's spouses, family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns.
This means that even after a Cream franchise is terminated, the former franchisee is still legally bound to avoid any actions that could harm Cream's business relationships. This restriction is quite broad, covering a wide range of potential business contacts.
Additionally, the FDD specifies that all obligations that expressly or by their nature survive the agreement's expiration or termination will remain in effect. These include obligations related to non-disparagement, non-competition, non-interference, confidentiality, information security, innovations, and indemnification. This reinforces the ongoing nature of the non-interference clause and other key obligations even after the franchise agreement ends.