Under what circumstances will the Cream Franchise Agreement automatically terminate without notice?

According to Cream's 2025 Franchise Disclosure Document, the Franchise Agreement will automatically terminate without notice under specific circumstances related to financial instability or legal actions against the franchisee. This means that Cream can immediately terminate the agreement if certain events occur, without needing to provide any prior warning or opportunity to correct the issue.

Specifically, the agreement terminates automatically if the franchisee makes an assignment for the benefit of creditors, which is a process where the franchisee transfers assets to a third party to manage and distribute to creditors. Similarly, consenting to the appointment of a receiver, trustee, or liquidator for a substantial part of the franchisee's property also triggers automatic termination. This indicates severe financial distress and inability to manage the business.

Furthermore, the agreement automatically terminates if any Jeni's Ice Creams Scoop Shop operated under a Franchise Agreement is attached, seized, subjected to a writ or distress warrant, or levied upon, unless these actions are vacated within 30 days. Likewise, if an order appointing a receiver, trustee, or liquidator is not vacated within 30 days, the agreement is automatically terminated. Finally, the agreement terminates automatically if the franchisee or any of their owners file for bankruptcy, or if a bankruptcy petition is filed against them. These conditions highlight the critical importance of maintaining financial stability and avoiding legal issues to preserve the Cream franchise agreement.