Can Cream be acquired by a business that is competitive with Jeni's Ice Creams Scoop Shops?

According to Cream's 2025 Franchise Disclosure Document, Cream can be acquired by a business that is similar to, the same, or competitive with Jeni's Ice Creams Scoop Shops. Cream reserves the right to be acquired by or acquire any other business, regardless of the form of transaction, including businesses that operate similarly to or competitively with Jeni's Ice Creams Scoop Shops, at any location worldwide, including within a franchisee's Protected Territory.

This means that a Cream franchisee could potentially find themselves operating near a business acquired by Cream that directly competes with their franchise, even within their protected territory. This could impact the franchisee's revenue and market share. The FDD states that in the event of such an acquisition, Cream and/or the acquiring company and its affiliates retain the right to continue operating or authorize others to operate such competitive businesses anywhere in the world, including within the franchisee's Development Area.

This clause highlights the importance of carefully evaluating the market and competitive landscape before investing in a Cream franchise. While a franchisee may be granted a protected territory, this protection does not prevent Cream itself from acquiring or being acquired by a competing business that could then operate within that territory. Prospective franchisees should consider this potential risk and its possible impact on their investment.

It is important for potential Cream franchisees to fully understand the implications of this clause and to discuss any concerns with Cream's management team before signing a franchise agreement. Understanding the company's long-term growth strategy and potential acquisition plans can help franchisees make informed decisions about their investment and business strategy.