Is Cream required to take affirmative action when notified of infringement of its copyrighted works?

According to Cream's 2025 Franchise Disclosure Document, Cream is not required to take affirmative action if notified of copyright infringement, nor is it obligated to participate in a franchisee's defense or provide indemnity for damages or expenses related to proceedings involving copyrighted works. This means that if a franchisee is involved in a legal dispute concerning Cream's copyrighted materials, Cream has no obligation to actively intervene or provide financial support for the franchisee's defense.

This policy places the responsibility and potential financial burden of defending against copyright-related claims solely on the franchisee. While Cream retains control over any action involving its copyrighted works, even if the franchisee brings the matter to their attention, they are not obligated to assist the franchisee in any legal proceedings.

For a prospective Cream franchisee, this highlights the importance of understanding the scope and limitations of Cream's support regarding intellectual property matters. It would be prudent to conduct thorough due diligence to assess the potential risks associated with using Cream's copyrighted materials and to consider obtaining appropriate insurance coverage to mitigate potential legal expenses.

Franchisees should also seek clarification from Cream regarding the specific circumstances under which Cream might choose to provide support or assistance in copyright-related matters, even though they are not legally obligated to do so. Understanding Cream's internal policies and past practices in similar situations can provide valuable insights into the level of support a franchisee might expect.