Under what conditions can Cream terminate the Franchise Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
deficiencies, we may revoke any approval of such a renewal franchise we may have awarded. If you fail to notify us of your election to acquire a renewal franchise within the prescribed time period, we need not grant you a renewal franchise.
14. TERMINATION OF AGREEMENT.
A. AUTOMATIC.
This Agreement and all rights granted to you in this Agreement shall automatically terminate without notice if: (1) you make an assignment for the benefit of creditors; (2) you consent to the appointment of a receiver, trustee, or liquidator of all or the substantial part of your property; (3) your Shop is attached, seized, subjected to a writ or distress warrant, or levied upon, unless the attachment, seizure, writ, warrant, or levy is vacated within 30 days; (4) any order appointing a receiver, trustee, or liquidator of you or your Shop is not vacated within 30 days following the order's entry; and/or (5) you or any of your owners file a petition in bankruptcy or a petition in bankruptcy is filed against you.
B. BY YOU.
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 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, the franchise agreement can be automatically terminated under certain conditions. These include if the franchisee makes an assignment for the benefit of creditors, consents to the appointment of a receiver, trustee, or liquidator of their property, or if a Jeni's Ice Creams Scoop Shop is attached, seized, or levied upon and the action is not vacated within 30 days. Additionally, Cream can automatically terminate the agreement if an order appointing a receiver, trustee, or liquidator is not vacated within 30 days, or if the franchisee files for bankruptcy or a bankruptcy petition is filed against them.
Cream can also terminate the agreement if the franchisee violates any law, ordinance, rule, or regulation related to their Development Rights and fails to correct the violation within 72 hours after notice. Cream may terminate the agreement if the franchisee fails to pay amounts due to Cream or its affiliates and does not correct the failure within 10 days after written notice. Furthermore, Cream can terminate the agreement if the franchisee fails to comply with the agreement on three or more occasions within a 12-month period, or on two or more occasions within a 12 consecutive month period regarding the same obligation, regardless of whether Cream provides notice or whether the franchisee corrects the failures.
Additionally, Cream can terminate the agreement if the franchisee fails to comply with any other provision of the agreement and does not correct the failure within 30 days' notice. Cream may also terminate the agreement if the franchisee or an affiliate fails to comply with any other agreement with Cream or its affiliate and does not correct such failure within the applicable cure period. Cream also reserves the right to terminate or reduce the size of the Development Area, and/or terminate the territorial protections if the franchisee fails to comply with the Development Schedule.