What representation does Cream require regarding the Principal Owner's power and authority?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You must identify on Attachment C one of your owners who is a natural person and who will have authority and signatory power on behalf of you (the "Principal Owner"). You must obtain our written consent prior to changing the Principal Owner and agree to deliver to us a revised Attachment C to accurately identify the Principal Owner should the identity of that person change during the Term as permitted hereunder. You agree that the Principal Owner is authorized, on your behalf, to deal with us in respect of all matters whatsoever which may arise in respect of this Agreement. Any decision made by the Principal Owner will be final and binding upon you, and we will be entitled to rely solely upon the decision of the Principal Owner in any such dealings without the necessity of any discussions with any other person, and we will not be held liable for any actions taken by you or otherwise, based upon any decision or actions of the Principal Owner. You represent and agree that the person acting as your Principal Owner has full power and authority to enter into this Agreement and any other documents to which you are a party, and to make binding decisions on your behalf.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee is an entity, Cream requires a representation regarding the Principal Owner's power and authority. The franchisee must identify a Principal Owner on Attachment C who is a natural person and has the authority and signatory power to act on behalf of the franchisee. Cream must provide written consent before the franchisee changes the Principal Owner, and the franchisee must update Attachment C to reflect any changes.
Cream stipulates that the Principal Owner is authorized to handle all matters related to the Franchise Agreement. Any decision made by the Principal Owner is considered final and binding, and Cream is entitled to rely solely on those decisions without needing to consult with anyone else. Cream will not be liable for actions taken based on the Principal Owner's decisions.
Cream requires a representation and agreement that the Principal Owner has full power and authority to enter into the Franchise Agreement and any other related documents, as well as to make binding decisions on behalf of the franchisee. This ensures that Cream has a single, authorized point of contact with full legal authority, streamlining communications and decision-making processes.