factual

Are there any exceptions to the one-year time limit for claims against Cream?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

UNLESS PROHIBITED BY APPLICABLE LAW, EXCEPT FOR CLAIMS ARISING FROM YOUR NON-PAYMENT OR UNDERPAYMENT OF AMOUNTS YOU OWE US, ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE DEVELOPMENT RIGHTS, OR OUR RELATIONSHIP WITH YOU WILL BE BARRED UNLESS A JUDICIAL OR ARBITRATION PROCEEDING IS COMMENCED IN ACCORDANCE WITH THIS AGREEMENT WITHIN ONE YEAR FROM THE DATE ON WHICH THE PARTY ASSERTING THE CLAIM KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THE CLAIMS. The parties understand that such time limit might be shorter than otherwise allowed by law.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, there is generally a one-year time limit for bringing claims. Specifically, any claims arising out of or relating to the franchise agreement, the development rights, or the relationship between Cream and the franchisee will be barred unless a judicial or arbitration proceeding is commenced within one year from the date the party asserting the claim knew or should have known of the facts giving rise to the claim. This time limit could be shorter than what is otherwise allowed by law.

However, there is an exception to this one-year limitation. The one-year limitation does not apply to claims arising from the franchisee's non-payment or underpayment of amounts owed to Cream. This means Cream can pursue franchisees for unpaid amounts even after the one-year period has passed, unless prohibited by applicable law.

It is important for prospective Cream franchisees to understand this limitation on claims, as it significantly restricts the time frame within which they can bring legal action against the franchisor. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and to ensure they are aware of any potential claims they may have against Cream within the one-year period.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.