Can Cream terminate the Development Rights if a Cream developer or owner is convicted of a felony?

According to Cream's 2025 Franchise Disclosure Document, Cream can terminate the Development Agreement if the developer or any of their owners has been convicted of a felony, or has pleaded no contest or guilty to a felony. Cream can enact this termination effective upon delivery of written notice to the developer.

This clause gives Cream a significant right to terminate the agreement based on criminal convictions of the developer or their owners. From the franchisee's perspective, this means that any past or future felony convictions or guilty pleas by the franchisee or their owners could jeopardize their Development Rights with Cream.

It is important to note that this termination right is not limited to convictions related to the Cream business. Any felony conviction, regardless of its nature, appears to give Cream the right to terminate the agreement. A prospective Cream developer should carefully consider this clause and ensure that they and their owners have a clean criminal record to avoid potential termination of their Development Rights.