According to the FDD, what is a 'Development Period' in the context of a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
A. DEVELOPMENT FEE.
On the Effective Date, you must pay us an area development fee (the "Development Fee") specified on Attachment B of this Agreement. The Development Fee is fully earned by us when you sign this Agreement. The Development Fee will be in lieu of the initial franchise fee due for the Jeni's Ice Creams Scoop Shops that you develop pursuant to the Development Schedule, which would otherwise be owed pursuant to each applicable Franchise Agreement.
B. DEVELOPMENT SCHEDULE.
Attachment B to this Agreement sets forth the schedule that you are hereby agreeing to satisfy as it relates to the development of Jeni's Ice Creams Scoop Shops (your "Development Schedule"), which may include one or more periods for you to develop and open a specified number of Jeni's Ice Creams Scoop Shops (each a "Development Period"). You must satisfy all of the conditions described in Section 2.C below for each Jeni's Ice Creams Scoop Shop in your Development Schedule by the
end of the applicable Development Period. You may not open more than the cumulative number of Jeni's Ice Creams Scoop Shops shown in your Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a 'Development Period' is defined within the context of an area development agreement, outlining the timeframe in which a franchisee must develop and open a specified number of Jeni's Ice Creams Scoop Shops, as detailed in the Development Schedule (Attachment B). The Development Schedule may include one or more Development Periods.
For a prospective Cream franchisee, this means they are obligated to meet specific milestones for opening new locations within each defined Development Period. Failing to meet these milestones can result in Cream terminating or reducing the size of the Development Area, and/or terminating the territorial protections. Cream will count a Jeni's Ice Creams Scoop Shop toward the satisfaction of the Development Schedule only if the franchisee has satisfied all of the following conditions prior to the end of the applicable Development Period: (1) secured Cream's approval of the proposed site; (2) executed Cream's then-current form of Franchise Agreement; (3) paid all associated fees; (4) executed a lease agreement or otherwise acquired occupancy rights to that premises; and (5) secured Cream's approval to open the Scoop Shop, and the Scoop Shop is open and operating in full compliance with its Franchise Agreement.
Cream does not guarantee the Development Area can support the number of Scoop Shops specified in the Development Schedule or during any particular Development Period. The franchisee is responsible for conducting their own independent investigation to determine if they can satisfy the development obligations. This places the onus on the franchisee to perform thorough market research and due diligence before committing to the development schedule.
In summary, the Development Period is a critical component of the Area Development Agreement, setting the pace and expectations for expansion. Franchisees must carefully consider the Development Schedule and their ability to meet its demands, as failure to do so can have significant consequences on their rights and territory.