What is the required action by Cream to terminate the agreement?

According to Cream's 2025 Franchise Disclosure Document, a franchisee can terminate the agreement if Cream materially fails to comply with the agreement and does not correct the failure within 30 days after the franchisee delivers written notice of the material failure to Cream. If Cream cannot correct the failure within 30 days, they must provide reasonable evidence of their effort to correct the failure within a reasonable time. If this occurs, the franchisee may terminate the agreement effective an additional 30 days after delivering a written notice of termination to Cream.

However, if the franchisee terminates the agreement in any way other than as described above, it will be considered a termination without cause and a breach of the agreement. This means the franchisee must follow the specific notification and waiting period requirements to properly terminate the agreement based on Cream's failure to comply.

This clause protects the franchisee by allowing them to end the agreement if Cream is not fulfilling its obligations. However, it also protects Cream by requiring a formal notification process and giving them an opportunity to correct the issue before termination can occur. Franchisees should carefully document any instances of non-compliance by Cream and follow the prescribed notification process to avoid being in breach of contract.