factual

Who has the sole responsibility to develop the Construction Plans and negotiate and execute the Lease for a Cream franchise?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

You acknowledge and agree that you have the sole responsibility to develop your Construction Plans and negotiate and execute your Lease. Any review or approval by us of your Construction Plans or Lease is for our sole benefit and indicates only that such Construction Plans and Lease satisfy our minimum requirements. You agree that you are not relying on our review and approval of your Construction Plans or Lease for your benefit. You further acknowledge that you have been advised to obtain the advice of your own professional advisors before you sign a Lease or any other legal documents, including permitting or licensing applications.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to the 2025 FDD, the Cream franchisee has the sole responsibility for developing the Construction Plans and negotiating and executing the Lease for their franchise location. While Cream must approve the site of the premises, the Construction Plans, and the Lease before the franchisee secures occupancy rights, this approval is solely for Cream's benefit and to ensure their minimum requirements are met.

This means that the franchisee is responsible for engaging an approved architect to develop detailed design and construction plans that comply with Cream's specifications, applicable ordinances, building codes, permit requirements, and lease requirements. The franchisee is also responsible for negotiating the Lease with the landlord, subject to Cream's approval and any required lease rider provisions. Cream advises franchisees to seek advice from their own professional advisors before signing any legal documents, including the Lease and permitting or licensing applications.

This arrangement places significant responsibility on the Cream franchisee to manage the development and leasing process. While Cream provides guidance and approval, the franchisee bears the primary burden of ensuring the Construction Plans and Lease meet all requirements and protect their interests. This highlights the importance of franchisees conducting thorough due diligence and seeking expert advice to navigate these critical aspects of establishing their Cream franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.