Is there an exception for shipping or supplier delays regarding the requirement to maintain sufficient inventory of Proprietary Products at a Cream shop?

According to Cream's 2025 Franchise Disclosure Document, a franchisee's failure to maintain sufficient inventory of Proprietary Products can lead to termination of the franchise agreement. However, there is an exception if the shortage is due to shipping or supplier delays that are entirely outside the franchisee's control.

Specifically, Cream may terminate the franchise agreement if the franchisee fails to maintain sufficient inventory to meet demand at their shop. However, this does not apply if the reason for the shortage is due to shipping or supplier delays that the franchisee cannot control. In such a case, the franchisee has 48 hours from notice to order sufficient Proprietary Products to correct the shortfall.

This clause protects Cream franchisees from termination in situations where they have taken appropriate steps to maintain inventory but are affected by circumstances beyond their control. However, it is important to note that the franchisee must still take action to correct the shortfall by ordering more products within 48 hours of being notified by Cream. This places the onus on the franchisee to actively manage their inventory and respond quickly to any supply chain disruptions.