Under what conditions can a Cream franchisee terminate the franchise agreement due to Cream's failure to comply with the agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
If you and your owners are fully complying with this Agreement and we materially fail to comply with this Agreement and do not correct the failure within 30 days after you deliver written notice of the material failure to us or if we cannot correct the failure within 30 days and we fail to give you within 30 days after your notice reasonable evidence of our effort to correct the failure within a reasonable time, you may terminate this Agreement effective an additional 30 days after you deliver to us written notice of termination. Your termination of this Agreement other than according to this Section 5.B will be deemed a termination without cause and a breach of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee can terminate the franchise agreement if they and their owners are fully complying with the agreement, and Cream materially fails to comply with the agreement. The franchisee must deliver written notice of the material failure to Cream, and Cream then has 30 days to correct the failure.
If Cream cannot correct the failure within 30 days, they must provide reasonable evidence of their effort to correct the failure within a reasonable time. This evidence must be provided to the franchisee within 30 days of the franchisee's original notice.
If Cream fails to correct the issue within the initial 30-day period or fails to provide reasonable evidence of their effort to correct the failure, the franchisee can terminate the agreement. The termination is effective an additional 30 days after the franchisee delivers a written notice of termination to Cream. Terminating the agreement in any way other than this is considered a termination without cause and a breach of the agreement.