Does Cream have the right to use collection agents to collect Brand Fund Contributions?

According to Cream's 2025 Franchise Disclosure Document, Cream has the right to use collection agents to collect Brand Fund Contributions. Cream has the right, but not the obligation, to use collection agents and institute legal proceedings to collect Brand Fund Contributions at the Brand Fund's expense. Cream may also forgive, waive, settle, and compromise all claims by or against the Brand Fund in its sole discretion.

This means that if a Cream franchisee fails to pay their required Brand Fund Contributions, Cream has the authority to take action to recover those funds. This could involve hiring a collection agency or initiating legal action, with the costs of these actions being borne by the Brand Fund itself. This is a fairly standard practice in franchising, as it ensures that the Brand Fund receives the necessary contributions to support marketing and promotional activities for the benefit of all franchisees.

It is important to note that Cream also has the discretion to forgive, waive, settle, or compromise claims against the Brand Fund. This provides Cream with flexibility in managing the Brand Fund and resolving disputes with franchisees. However, franchisees should be aware that Cream is not obligated to pursue collection of unpaid Brand Fund Contributions in every case, and the decision to do so is at Cream's discretion.