Is signing a general release of claims against Cream a condition of franchise renewal?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
efusal, or if there is a material change in the terms of the sale (which you agree to tell us promptly), we or our designee will have an additional right of first refusal on the same terms as described above.
13. RENEWAL OF YOUR FRANCHISE.
A. YOUR RIGHT TO RENEW YOUR FRANCHISE.
When this Agreement expires, you may renew your franchise to operate your Shop for two successive terms of 5 years each, if you meet the following conditions:
- (1) yo
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, signing a general release of claims is required for franchise renewal. Specifically, to renew the franchise for two successive terms of 5 years each, the franchisee and their owners 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.
This requirement means that as a condition of renewing their franchise agreement, a franchisee must waive their rights to pursue any legal claims against Cream, except where prohibited by law. This includes known and unknown claims, which could potentially limit the franchisee's ability to seek legal recourse for issues that may arise during the franchise term. The franchisee is also required to sign franchise agreements and ancillary documents that may differ materially from the original agreement, including changes to royalty fees, brand fund contributions and protected territory.
However, certain states like Maryland and Minnesota have specific regulations that may limit the enforceability of such releases. For instance, in Maryland, any release required as a condition of renewal will not apply to claims or liability arising under the Maryland Franchise Registration and Disclosure Law. Similarly, in Minnesota, any release required as a condition of renewal will not apply to the extent prohibited by the Minnesota Franchises Law. Franchisees in these states retain certain rights and protections under state law, regardless of the general release.
Prospective franchisees should carefully consider the implications of signing a general release and consult with legal counsel to understand their rights and obligations. They should also be aware of any state-specific laws that may affect the enforceability of the release. It is important to fully understand what claims are being waived and the potential impact on their ability to pursue legal action against Cream in the future.