Can Cream or its affiliates derive revenue or profits from a Cream franchisee's purchases from approved suppliers?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may concentrate purchases with one or more suppliers for any reason, including to obtain lower prices, advertising support, and/or services for us, our affiliates, or any group of Jeni's Ice Creams Scoop Shops that we designate. You acknowledge and agree that we and/or our affiliates may derive consideration, revenue, and/or profits based on your purchases (including from charging you for products and services we or our affiliates provide to you, and from promotional allowances, rebates, volume discounts, and other payments, services, or consideration we receive from suppliers on the basis of sales to you or other franchise owners). We and/or any of our affiliates may retain and use such consideration, revenue, and profit without restriction.
If you would like us to consider approving a supplier that is not an approved supplier, you must submit your request in writing before purchasing any items or services from that supplier. We will make all determinations about whether to approve an alternative supplier in our discretion based on our then-current criteria, which may change from time to time. We may also refuse to consider and/or approve any proposed alternative supplier for any reason whatsoever, including that we will not under any circumstances approve or consider any alternative supplier for Proprietary Products. We may, with or without cause, revoke our approval of any supplier at any time.
We may, at our option, arrange with designated vendors, to collect or have our affiliates collect fees and expenses associated with products and services, to provide such services to you and, in turn, pay the vendor on your behalf for such products or services. If we elect to do so, you agree that we or our affiliates may auto debit your Transfer Account for such amounts in the same manner and using the same authorization that you grant us with respect to payment of Royalty Fees and other fees.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream and its affiliates may derive revenue from franchisee purchases from approved suppliers. Cream may concentrate purchases with specific suppliers to obtain benefits such as lower prices or advertising support.
Cream and its affiliates may receive consideration, revenue, or profits based on a franchisee's purchases. This can include charging franchisees for products and services provided by Cream or its affiliates, as well as receiving promotional allowances, rebates, volume discounts, or other payments from suppliers based on sales to franchisees. Cream and its affiliates can retain and use this revenue without restriction.
If a franchisee wants to use a supplier that is not already approved, they must submit a written request for approval. Cream has the discretion to approve or disapprove alternative suppliers based on its criteria, which may change. Cream may refuse to approve any proposed alternative supplier, and will not approve any alternative supplier for Proprietary Products. Cream can also revoke approval of any supplier at any time, with or without cause.
Cream may arrange for designated vendors or affiliates to collect fees and expenses associated with products and services, provide these services to the franchisee, and then pay the vendor on the franchisee's behalf. In such cases, Cream or its affiliates may auto-debit the franchisee's Transfer Account for these amounts, using the same authorization provided for Royalty Fees and other fees.