Is the accuracy of Cream's financial performance representations dependent on the accuracy of the underlying data?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
igure to promote the franchise system.
ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about performance at a particular location or under particular circumstances.
As of December 31, 2024, there were a total of 87 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States. Of the 87 corporate-owned Jeni's Ice Creams Scoop Shops, 2 opened during 2024 and were not operating for the entirety of 2024, and 2 operated on a limited seasonal basis and therefore were not operating for the entirety of 2024. The data presented in this Item 19 is based
on the remaining 83 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States for the entirety of the 2024 calendar year (the "Item 19 Shops"). We had no franchised outlets operating as of the end of our most recent fiscal year and are therefore not able to present results for franchised outlets.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the franchisor permits providing information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. The franchisor may only give financial performance information that differs from Item 19 if providing the actual records of an existing outlet being considered for purchase, or supplementing the information in Item 19 with details about performance at a specific location or under certain conditions.
Cream does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, besides the preceding financial performance representation. Cream also does not authorize their employees or representatives to make such representations either orally or in writing. If purchasing an existing outlet, Cream may provide the actual records of that outlet.
If a prospective Cream franchisee receives any other financial performance information or projections of future income, they should report it to the franchisor's management by contacting Sean Bock at 401 North Front Street, Suite 300, Columbus, Ohio 43215, (602) 505-4325, the Federal Trade Commission, and the appropriate state regulatory agencies. The FDD emphasizes the importance of relying only on documented financial performance representations and reporting any unauthorized claims to ensure transparency and compliance.