factual

Does Cream advise franchisees to obtain advice from professional advisors before signing a Lease?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. INITIAL:
I received a copy of the FDD at least 14 calendar days before I executed a Franchise INITIAL:
Agreement or paid Franchisor or its affiliates any fees. I understand that all of my rights and
responsibilities and those of Franchisor in connection with the franchise are set forth in these
agreements and only in these agreements. I have had the opportunity to personally and
carefully review these documents and have, in fact, done so. I have been advised to have
professionals (such as lawyers and accountants) review the documents for me and to have
them help me understand these documents. I have also been advised to consult with other
franchisees regarding the risks associated with the purchase of the franchise.

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

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, Cream advises franchisees to seek professional advice when reviewing the franchise agreement, but it does not specifically mention seeking advice related to leases. The FDD emphasizes the importance of understanding the franchise documents and consulting with professionals such as lawyers and accountants to aid in this understanding.

While the FDD does not explicitly state that franchisees should consult with professionals before signing a lease, it does state that Cream must approve any site for a Jeni's Ice Creams Scoop Shop before the franchisee enters into any lease or other agreement to secure the site. This implies that Cream plays a role in the site selection process and lease negotiation, but it does not replace the need for independent professional advice.

Given the significant financial and legal obligations associated with commercial leases, it would be prudent for prospective Cream franchisees to seek advice from experienced real estate attorneys or consultants. These professionals can help franchisees understand the lease terms, negotiate favorable conditions, and assess the risks associated with the lease agreement. This is especially important considering that the success or failure of the franchise is subject to many variables such as location and lease terms.

Therefore, while Cream advises franchisees to seek professional advice on the franchise agreement, it is up to the franchisee to seek additional advice regarding leases. A prospective franchisee should ask Cream about their site selection process and what support they offer in reviewing and negotiating lease terms.

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.