What is Cream's policy regarding special or restrictive legends on checks?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
No right, power, or option you or we are provided under this Agreement will be impaired or waived because of any custom or practice at variance with this Agreement's terms or your or our failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including any System Standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Jeni's Ice Creams Scoop Shops; the existence of area development agreements for other Jeni's Ice Creams Scoop Shops which contain provisions different from those contained in this Agreement; or our acceptance of any payments due from you after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream is not bound by special or restrictive legends or endorsements placed on checks or similar items provided as payment. Cream retains the authority to remove any such legend or endorsement, and it will not have any legal effect. This means that if a franchisee attempts to use a check with a restrictive endorsement (e.g., stating that the payment constitutes full settlement of a disputed amount), Cream is not obligated to honor that restriction.
This policy protects Cream from inadvertently waiving its rights or claims due to restrictive language added to payments by franchisees. It ensures that Cream can accept payments without being bound by conditions unilaterally imposed by the franchisee. This is a fairly standard provision in franchise agreements, as it prevents franchisees from using payment checks as a means of altering the contractual obligations.
For a prospective Cream franchisee, this means you cannot use restrictive endorsements on checks to try and resolve disputes or modify the terms of the franchise agreement. Cream has the right to disregard such endorsements and can even remove them from the check. If a franchisee has a legitimate dispute, it should be resolved through proper channels of communication and negotiation, not through attempting to impose conditions on payments.