Does the release required for renewal or assignment/transfer of a Cream franchise apply in Minnesota?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
ILLINOIS
The following provisions are annexed to and form part of this Agreement if and only if, and in such case to the extent that: (a) you are domiciled in the State of Illinois or (b) the offer of the franchise is made or accepted in the State of Illinois and your franchised business is or will be operated in the State of Illinois.
- The following language is added to the end of the Agreement:
Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the State of Illinois will govern this Agreement.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, any release required as a condition of renewal or transfer/assignment of a franchise in Minnesota will not apply if it is prohibited by the Minnesota Franchises Law. This protection is specifically applicable if the franchised business operates in Minnesota, or if the franchisee is a resident, domiciled, or physically present in Minnesota. This stipulation is added to Sections 12.C(4), 12.E, 13.A(8), and 15.D of the Franchise Agreement.
For Area Development Agreements in Minnesota, a similar provision applies. Any release required for renewal or assignment/transfer will not be enforced to the extent it violates the Minnesota Franchises Law. This condition is added to Sections 4.B and 4.C(4) of the Area Development Agreement, ensuring that Minnesota franchisees and area developers retain their rights under state law during franchise renewal or transfer processes.
This means that Cream franchisees in Minnesota cannot be forced to sign away their rights under Minnesota franchise law as a condition of renewing their franchise agreement or transferring it to another party. This provides an added layer of protection for franchisees, ensuring they are not subjected to unfair or overreaching release requirements that could compromise their legal standing under state regulations. Franchisees should consult with a legal professional to fully understand their rights and obligations under Minnesota law.