factual

On whom are the provisions in the Rider applicable to Tenant and Landlord binding regarding a Cream franchise?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

All provisions in this Rider applicable to Tenant and Landlord will be binding on any successor or assign of Tenant or Landlord under the Lease.

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

What This Means (2025 FDD)

According to the 2025 FDD, the provisions in the Rider applicable to the Tenant and Landlord in a Cream franchise agreement are binding on any successor or assign of the Tenant or Landlord under the Lease. This means that if either the Tenant (the franchisee) or the Landlord sells or transfers their interest in the property or the lease, the new party will also be subject to the terms outlined in the Rider.

This clause ensures that the obligations and rights detailed in the Rider remain in effect even if the original parties to the lease change. For a prospective Cream franchisee, this provides some assurance that the terms negotiated in the Rider, which protect the franchisee's interests and the franchisor's rights, will continue to be honored even if the property ownership changes hands.

For example, if the Landlord sells the property, the new owner must still provide the Cream franchisee with the same signage rights and notice/cure rights as the original Landlord agreed to. Similarly, if the franchisee sells the business, the new franchisee will be bound by the Rider's terms, such as the obligation to obtain the Franchisor's consent before amending the lease. This "successors and assigns" clause is a standard legal provision that helps maintain the stability and enforceability of the lease agreement and associated Rider over time.

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.