Does Cream have to take affirmative action when notified of infringement of or participate in a franchisee's defense?

According to Cream's 2025 Franchise Disclosure Document, Cream is not obligated to take action if notified of copyright infringement related to the franchise, nor is it required to participate in a franchisee's legal defense. Cream also does not have to cover any damages or expenses incurred by the franchisee in any legal proceedings involving the copyrighted works. This means that if a franchisee is sued for copyright infringement related to materials used in operating their Cream shop, the franchisee would likely be responsible for their own defense and any associated costs.

This arrangement places the risk of copyright-related legal issues primarily 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 provide support or financial assistance to the franchisee.

This is a notable point for potential Cream franchisees to consider. It is important to understand the scope of copyrighted materials used in the franchise and to assess the potential risks of infringement. Franchisees may want to seek legal counsel to understand their rights and responsibilities in the event of a copyright claim. It would also be prudent to inquire with Cream about any history of copyright claims related to the franchise system and what measures are in place to minimize the risk of infringement.