Does Cream require written consent before a franchisee can change the Principal Owner?

According to Cream's 2025 Franchise Disclosure Document, franchisees must obtain written consent from Cream before changing the Principal Owner. The Principal Owner must be a natural person with at least 10% ownership interest and voting power, authorized to supervise the business and act on behalf of the franchisee in all matters related to the Franchise Agreement.

This requirement ensures that Cream maintains a consistent point of contact with each franchise location and that the person in charge has sufficient authority and a vested interest in the business. It also allows Cream to vet the proposed Principal Owner to ensure they meet the brand's standards and are capable of fulfilling the responsibilities associated with the role.

The franchisee is required to identify one of their owners as the Principal Owner, who will have the authority and signatory power on behalf of the franchisee. If the identity of the Principal Owner changes during the term of the agreement, the franchisee must notify Cream and provide a revised attachment to accurately identify the new Principal Owner. Cream emphasizes that any decision made by the Principal Owner will be final and binding, and Cream will rely solely on the Principal Owner's decisions without needing to consult with any other person.

This requirement is fairly standard in franchising, as franchisors typically want to maintain control over who is managing their brand at the local level. Franchisees should carefully consider who they designate as the Principal Owner and ensure that any changes are properly documented and approved by Cream to avoid potential breaches of the Franchise Agreement.