Under what conditions can Cream terminate the Development Rights if a Cream developer makes a material misrepresentation or omission?

According to Cream's 2025 Franchise Disclosure Document, Cream can terminate the Development Agreement with a developer if the developer or any of their owners has made or makes any material misrepresentation or omission in acquiring the Development Rights. The termination is effective upon delivery of written notice to the developer.

This means that if a prospective Cream developer provides false or misleading information during the application or acquisition process for their Development Rights, Cream has the right to terminate the agreement. This could include misrepresenting financial capabilities, prior business experience, or any other information deemed relevant by Cream during the approval process.

It is crucial for potential Cream developers to ensure that all information provided to Cream is accurate and complete. Failure to do so could result in the termination of the Development Agreement and the loss of the opportunity to develop Cream locations within the designated area. This provision protects Cream from entering into agreements with individuals or entities that may not be suitable or capable of fulfilling their obligations under the Development Agreement.