Under what circumstances can Cream revoke approval of a renewal franchise?

According to Cream's 2025 Franchise Disclosure Document, Cream may revoke approval of a renewal franchise if the franchisee is required to remodel their shop or cure certain deficiencies as a condition of being granted the renewal franchise, and the franchisee fails to complete the remodeling or cure those deficiencies. Cream's notice to the franchisee may describe required remodeling, maintenance, expansion, improvements, technology upgrades, trade dress updates, and/or modifications to bring the shop into compliance with system standards for new Cream Scoop Shops. The notice will also state the actions the franchisee must take to correct operating deficiencies and the time period in which they must correct these deficiencies.

This means that even after Cream has initially agreed to a franchise renewal, the agreement is contingent upon the franchisee meeting specific requirements related to the condition and operation of the shop. If Cream identifies areas needing improvement, such as outdated decor or operational inefficiencies, the franchisee must address these issues to Cream's satisfaction. The franchisee is responsible for the costs associated with remodeling or correcting deficiencies.

This conditionality is fairly common in franchise renewals, as franchisors want to ensure that all locations maintain a consistent brand image and meet current operational standards. For a prospective Cream franchisee, this highlights the importance of maintaining the shop in good condition and adhering to Cream's standards throughout the initial term of the franchise agreement. Failure to do so could jeopardize the opportunity to renew the franchise, even if initially approved.