During the term of the Cream franchise agreement, are franchisees required to prevent their associates from becoming targets of anti-money laundering and counter-terrorism financing laws?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You further represent and warrant to us that you and your owners are now, and have been, in compliance with U.S. anti-money laundering and counter-terrorism financing laws and regulations, and that any funds provided by you or your owners to us or our affiliates are and will be legally obtained in compliance with these laws. You agree not to, and to cause all of your owners, employees, agents, representatives, and any other person or entity associated with you not to, during the Term, take any action or refrain from taking any action that would cause such person or entity to become a target of any such laws and regulations.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees have an obligation to ensure that they, their owners, employees, agents, representatives, and any other associated person or entity do not become targets of U.S. anti-money laundering and counter-terrorism financing laws during the term of the franchise agreement. This means franchisees must take proactive steps to prevent any actions that could lead to such targeting.
Cream franchisees must warrant that they and their owners are currently compliant with U.S. anti-money laundering and counter-terrorism financing laws and regulations. They also must ensure that any funds provided to Cream or its affiliates are legally obtained in compliance with these laws. This requirement highlights the importance of financial transparency and legal compliance in the operation of a Cream franchise.
This provision places a significant responsibility on the franchisee to monitor and control the activities of everyone associated with the franchise to prevent any potential violations of these laws. Failure to comply could result in legal and financial repercussions for both the franchisee and Cream.