Under what circumstances may the Franchisor or its designee enter the Cream franchise premises?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord acknowledges and agrees that Franchisor or its designee may enter the Premises for all purposes permitted under the terms of the Franchise Agreement, including to inspect the Premises and the Jeni's Ice Creams Scoop Shop's operations, to manage the Tenant's business on Tenant's behalf under certain circumstances (e.g., Tenant's failure to timely cure its default of the Franchise Agreement, and while Franchisor evaluates its right to purchase the location), or to remove any trade fixtures or signage upon termination or expiration of the Franchise Agreement.
If Franchisor enters the Premises for any such purposes, it will do so without assuming any liability under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream or its designee has the right to enter the franchise premises under specific conditions outlined in the franchise agreement. These conditions include the right to inspect the premises and the Cream shop's operations to ensure compliance with standards. Cream may also enter the premises to manage the franchisee's business on their behalf under certain circumstances, such as if the franchisee fails to correct a default of the Franchise Agreement in a timely manner, or while Cream is evaluating its right to purchase the location. Additionally, Cream can enter the premises to remove any trade fixtures or signage upon the termination or expiration of the Franchise Agreement.
This right of entry allows Cream to maintain brand standards and protect its investment in the franchise network. By inspecting the premises and operations, Cream can ensure that franchisees are adhering to the required standards of quality and service. In situations where a franchisee is in default or the agreement has been terminated, Cream's ability to enter the premises is crucial for managing the transition and protecting the brand's reputation.
It is important to note that if Cream enters the premises for any of these reasons, it will do so without assuming any liability under the lease agreement. This provision protects Cream from being held responsible for the franchisee's lease obligations while exercising its rights under the Franchise Agreement. This clause clarifies the relationship between Cream, the franchisee, and the landlord, ensuring that each party's responsibilities are clearly defined.
Prospective franchisees should carefully consider these conditions and understand the circumstances under which Cream may exercise its right to enter the premises. This understanding is crucial for maintaining a positive working relationship with Cream and ensuring compliance with the Franchise Agreement.