Under what conditions can Cream terminate the Development Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ect 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 14.B will be deemed a termination without cause and a breach of this Agreement.
C. BY US.
We may terminate this Agreement, effective upon delivery of written notice to you, if:
(1) you or any of your owners have made or make any material misrepresentation or omission in acquiring the rights under this Agreement or in operating your Shop;
- (2) you do not obtain lawful possession of a Premises we have approved and deliver to us a fully executed copy of the Lease and lease addendum we have approved for such Premises, in each case by the deadline set forth in Section 2.B;
- (3) you do not satisfy all of your development obligations specified in this Agreement, including obtaining our approval prior to opening your Shop, and open your Shop for business by the deadline specified in Section 2.C;
- (4) your Mandatory Trainees do not satisfactorily complete the Initial Training Program;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream can terminate the Development Agreement under several conditions. These include misrepresentation or omission by the franchisee or their owners when acquiring rights or operating their shop. Cream can also terminate the agreement if the franchisee does not obtain lawful possession of an approved premises or fails to provide a fully executed lease or purchase agreement.
Additional grounds for termination include the franchisee's failure to comply with the Development Schedule, violating any law related to exercising Development Rights without correcting the violation within 72 hours of notice, or failing to pay amounts due to Cream or its affiliates without correcting the failure within 10 days of written notice. Furthermore, Cream can terminate the agreement if the franchisee fails to comply with any provision of the agreement and does not correct the failure within 30 days' notice, or if the franchisee fails to comply with any other agreement with Cream or its affiliate without correcting it within the applicable cure period.
These termination conditions highlight the importance of fulfilling all obligations under the Development Agreement, including meeting the Development Schedule, maintaining legal compliance, and adhering to payment terms. A prospective Cream franchisee should carefully review these conditions and ensure they have the resources and capabilities to meet these requirements to avoid potential termination of their Development Agreement. It is also important to maintain open communication with Cream to address any potential issues promptly and seek clarification on any ambiguous terms or conditions.