Will a special or restrictive legend on a check given to Cream be considered a waiver, compromise, settlement, or accord and satisfaction?

According to Cream's 2025 Franchise Disclosure Document, any special or restrictive legend or endorsement on a check or similar item given to Cream will not be considered a waiver, compromise, settlement, or accord and satisfaction. Cream is authorized to remove any such legend or endorsement, and it will have no effect. This policy is designed to protect Cream's rights and ensure that accepting a payment does not inadvertently relinquish any claims or rights Cream may have.

For a prospective Cream franchisee, this means that if you attempt to use a check with a restrictive legend to settle a dispute or obligation with Cream, the attempt will be invalid. Cream retains the right to pursue the full amount owed or enforce the original terms of the agreement, regardless of any notation you make on the payment. This clause aims to prevent franchisees from unilaterally altering the terms of their agreements through payment mechanisms.

This provision is fairly standard in franchise agreements. It protects the franchisor from unintentionally waiving rights due to accepting payments with restrictive endorsements. Franchisees should be aware that any attempt to use such endorsements to resolve disputes or reduce obligations will likely be ineffective, and Cream is authorized to remove such endorsements, which will then have no effect.