Does Cream waive rights if it fails to insist on compliance with System Standards?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
No right, power, or option you or we are provided under this Agreement will be impaired or waived because of any custom or practice at variance with this Agreement's terms or your or our failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including any System Standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Jeni's Ice Creams Scoop Shops; the existence of area development agreements for other Jeni's Ice Creams Scoop Shops which contain provisions different from those contained in this Agreement; or our acceptance of any payments due from you after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream does not waive its rights if it fails to insist on a franchisee's compliance with System Standards. Cream retains its rights and options under the franchise agreement, regardless of any leniency shown or previous instances where strict adherence was not enforced. This means that Cream's failure to enforce a specific standard at one time does not prevent them from enforcing it strictly in the future.
This provision protects Cream's ability to maintain consistent standards across all franchise locations. Even if Cream has overlooked a franchisee's minor infraction in the past, it can still enforce the System Standards fully at any time. This ensures that all Cream locations adhere to the brand's operational guidelines and protects the brand's reputation and consistency.
For a prospective Cream franchisee, this means that they cannot rely on past leniency as a guarantee of future flexibility. Cream has the right to demand strict compliance with all System Standards, and a franchisee's failure to meet these standards can result in penalties or even termination of the franchise agreement. Franchisees should ensure they fully understand and adhere to all System Standards to avoid potential issues with Cream.