Under what conditions can Cream unilaterally waive or reduce an obligation under the Franchise Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights we or you have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of 10 days' prior written notice.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, both Cream and the franchisee can unilaterally waive or reduce obligations under the Franchise Agreement. This waiver or reduction must be documented in a written instrument. Cream must deliver written notice to the franchisee, specifying the effective date of the waiver.
Any waiver granted by Cream is not permanent. Cream retains the right to review the waiver continuously and can revoke it at any time, for any reason. To revoke a waiver, Cream must provide the franchisee with 10 days' prior written notice.
This clause ensures that Cream maintains flexibility in enforcing the Franchise Agreement, while also providing franchisees with a degree of certainty through written notice. However, franchisees should be aware that any waivers granted by Cream can be revoked with only 10 days' notice, potentially requiring them to quickly comply with previously waived obligations.