During what period must the franchisee and its owners not have violated any agreement with Cream or its affiliates to be eligible for a transfer?

According to Cream's 2025 Franchise Disclosure Document, a franchisee and their owners must not have violated any agreement with Cream or its affiliates during two distinct periods to be eligible for a transfer. These periods include the 60-day period before requesting Cream's consent for the transfer and the time between the request and the actual effective date of the transfer. This requirement ensures that the franchisee is in good standing both when initiating the transfer process and throughout its completion.

Specifically, Cream mandates that during these periods, the franchisee must have paid all royalties, brand fund contributions, and any other amounts owed to Cream, its affiliates, and third-party suppliers. Additionally, the franchisee must have submitted all required reports and statements. Compliance with these financial and reporting obligations is critical for maintaining eligibility for the transfer.

This condition is a standard practice in franchising, designed to protect the integrity of the brand and ensure that franchisees fulfill their contractual obligations before transferring ownership. For a prospective Cream franchisee, this means maintaining diligent records of payments and submissions and promptly addressing any potential breaches of the franchise agreement to avoid complications during a future transfer.