During the term of the agreement, can a Cream franchisee sublicense their right to use the Marks and the System?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You are hereby granted a limited, non-exclusive license to use the Marks and the System, during the Term, strictly to operate your Shop in compliance with the terms of this Agreement and our System Standards. You have no right to sublicense or assign your right to use the Marks and the System.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are granted a limited, non-exclusive license to use Cream's Marks and System to operate their shop. However, this license is strictly for the franchisee's own operation and compliance with the franchise agreement.
The FDD explicitly states that Cream franchisees do not have the right to sublicense or assign their right to use the Marks and the System. This means a franchisee cannot grant another party the authority to operate under the Cream brand or utilize its established System.
This restriction is typical in franchising, as it allows Cream to maintain tight control over its brand standards and protect its intellectual property. Allowing franchisees to sublicense could dilute the brand and create inconsistencies in quality and service, which could harm the overall reputation of the Cream franchise system.