Can Cream terminate the agreement if a Cream franchisee or owner is convicted of a felony?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement, effective upon delivery of written notice to you, if:
- (6) you or any of your owners are or have been convicted of or have pleaded no contest or guilty to a felony;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream can terminate the franchise agreement if a franchisee or any of their owners has been convicted of a felony. This termination is effective immediately upon written notice from Cream to the franchisee.
This clause is a standard inclusion in franchise agreements to protect the brand's reputation and ensure legal compliance. A felony conviction can indicate a risk to the business, employees, and customers, potentially harming the Cream brand's image. The immediate termination upon notice provides Cream with a swift mechanism to address such situations.
For a prospective Cream franchisee, this means that maintaining a clean legal record is crucial. Any past or future felony convictions of the franchisee or their owners could lead to the termination of the franchise agreement, resulting in the loss of their investment and the right to operate the Cream franchise. Franchisees should ensure all owners and stakeholders are aware of this clause and its implications.