Does Cream require a general release of claims to be signed for franchise renewal?

According to Cream's 2025 Franchise Disclosure Document, franchisees are required to sign a general release of claims as a condition of franchise renewal. Specifically, to renew the franchise for two successive terms of 5 years each, the franchisee must agree to sign a general release of any and all claims against Cream and its owners, affiliates, officers, directors, employees, agents, successors, and assigns. This release must be in a form satisfactory to Cream, with an exception for claims that cannot be released or waived under applicable franchise statutes.

The general release means that the franchisee is giving up their right to sue Cream for any past issues or disputes, known or unknown, that occurred up to the date of signing the release. This is a significant commitment, as it potentially prevents a franchisee from seeking legal recourse for any grievances they may have against Cream. The FDD includes a sample general release agreement as Exhibit B-4.

However, the FDD also notes some state-specific exceptions to this requirement. For example, in Maryland and Minnesota, any release required as a condition of renewal will not apply to claims or liabilities arising under the Maryland Franchise Registration and Disclosure Law or the Minnesota Franchises Law, respectively. Furthermore, if the franchised business is in California or if any of the releasing parties are residents of California, there is a Section 1542 acknowledgment regarding the waiver of unknown claims under California Civil Code.

Prospective Cream franchisees should carefully consider the implications of signing a general release, and consult with legal counsel to fully understand their rights and obligations. They should also be aware of any state-specific laws that may limit the scope of the release. It is a common practice in franchising to require a general release upon renewal, but the specific terms and conditions can vary, so it is important to review the franchise agreement and disclosure document thoroughly.