Must the Principal Owner for a Cream franchise have signatory power on behalf of the franchisee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You must identify one of your owners who is a natural person with at least 10% ownership interest and voting power in you and who will have authority and signatory power on your behalf (the "Principal Owner") to supervise the business you conduct under the Franchise Agreement. Your Principal Owner must be authorized to deal with us in all matters whatsoever which may arise with respect to the Franchise Agreement. You must obtain our written consent prior to changing the Principal Owner.
You are solely responsible for the management, direction and control of your Shop and all day-to-day operations of your Shop. You must supervise the management and day-to-day operation of your Shop and continuously exert best efforts to promote and enhance your Shop. If you (or your Principal Owner) does not wish to manage the operation of your Shop on a day-to-day basis, you must obtain our approval of any person that you wish to engage to supervise the management of your Shop (each a "Shopkeeper"). We may establish conditions for approving any such Shopkeeper, which may include the completion of training, confirmation that such Shopkeeper will have no competitive business, and/or execution of a non-disclosure agreement. During any period in which no Shopkeeper is approved (including because the Shopkeeper resigns or otherwise indicates to us or you that he or she wishes to cease acting as your Shopkeeper, or we disapprove of your Shopkeeper for any reason), you (or your Principal Owner) must supervise the day-to-day operations of your Shop. Your Shop must always be under the direct on-site supervision of one or more persons who we have approved and who
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 42–43)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if the franchisee is a legal business entity, Cream requires the franchisee to designate a Principal Owner. This Principal Owner must be a natural person who owns at least 10% ownership interest and voting power in the franchisee's business.
The Principal Owner must have the authority and signatory power to act on behalf of the franchisee in all dealings with Cream. This means the Principal Owner is authorized to handle any matters that arise concerning the Franchise Agreement. Cream requires written consent before the franchisee can change the Principal Owner.
Cream emphasizes that the Principal Owner is authorized to deal with them on all matters related to the Franchise Agreement. Any decision made by the Principal Owner is considered final and binding on the franchisee. Cream is entitled to rely solely on the Principal Owner's decisions without needing to consult with anyone else and will not be liable for actions taken based on those decisions.