Does Cream require franchisees to warrant that they are not subject to Nonproliferation Sanctions?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
19. PROHIBITED PARTIES.
You hereby represent and warrant to us, as an express consideration for the franchise granted hereby, that neither you nor any of your owners, employees, agents, or representatives, nor any other person or entity associated with you, is now, or has been:
(1) Listed on: (i) the U.S. Treasury Department's List of Specially Designated Nationals; (ii) the U.S. Commerce Department's Denied Persons List, Unverified List, Entity
List, or General Orders; (iii) the U.S. State Department's Debarred List or Nonproliferation Sanctions; or (iv) the Annex to U.S. Executive Order 13224.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream requires franchisees to represent and warrant that they are not subject to Nonproliferation Sanctions. Specifically, as an express consideration for the franchise, the franchisee must warrant that neither they, nor any of their owners, employees, agents, representatives, or any person or entity associated with them, is currently or has been listed on the U.S. State Department's Debarred List or Nonproliferation Sanctions.
This requirement is part of a broader set of representations and warranties related to prohibited parties. Cream aims to ensure that its franchisees and their associated parties are not involved in activities that could be detrimental to the brand or in violation of U.S. laws and regulations. This includes not being listed on various U.S. government lists related to specially designated nationals, denied persons, entities involved in terrorism, or those subject to nonproliferation sanctions.
For a prospective Cream franchisee, this means undergoing a thorough check to ensure compliance with these regulations. It is crucial to understand the implications of these representations and warranties, as any misrepresentation could lead to legal and financial repercussions, including potential termination of the franchise agreement. Franchisees should ensure that all individuals and entities associated with their business are also in compliance with these requirements.