factual

Does Cream have to use my existing suppliers during interim operations of my Cream shop?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

You understand that we are not required to use your employees, suppliers, or contractors to operate your Shop.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, if Cream elects to operate your shop on an interim basis, they are not required to use your existing employees, suppliers, or contractors. This means that Cream has the discretion to choose their own personnel and vendors during the period they are managing the shop.

This provision is triggered if you abandon the shop, become disabled, or upon termination/expiration of the franchise agreement while Cream decides whether to transition operations. During this interim period, you, as the franchisee, remain responsible for accounts payable, obligations, contracts, lease obligations, and taxes, unless Cream expressly assumes these responsibilities upon purchasing your shop.

However, Cream's operation during this interim phase requires only reasonable effort, and they are not liable for debts, losses, or obligations incurred by the shop, or for payments to your creditors for supplies, products, or services purchased during their management. Cream also retains the right to cease interim operations at any time with notice to you. This clause protects Cream from liability while giving them control over operations during the transition period.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.