factual

Regarding non-interference with Cream's relationships, are former spouses of the franchisee's owners included in the list of parties who must not solicit or interfere with Cream's relationships?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, the non-interference clause extends to former spouses of the franchisee's owners. During and after the franchise term, franchisees and their owners must ensure that their current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns do not solicit, interfere, or attempt to interfere with Cream's relationships. These relationships include those with customers, franchisees, licensees, lenders, suppliers, or consultants.

This provision means that a franchisee must actively manage and control the behavior of a broad range of related parties to prevent any disruption to Cream's business relationships. This obligation continues even after the franchise agreement ends. The franchisee is responsible for making their family members and business associates aware of these restrictions and taking steps to ensure compliance.

The inclusion of former spouses highlights the importance Cream places on protecting its business relationships. It also places a potentially significant burden on the franchisee to monitor and manage the actions of individuals over whom they may have limited or no direct control, especially after a divorce. This requirement is stricter than some franchise agreements, which may only cover current spouses or immediate family members.

Prospective franchisees should carefully consider the implications of this extended non-interference obligation. They should discuss with Cream how this provision is enforced and what specific steps they need to take to ensure compliance by all relevant parties, including former spouses, to avoid potential breaches of the franchise agreement.

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.