Which agreement, Franchise or Area Development, specifies pre-opening purchase/lease obligations for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Once you receive our approval of your Lease, you must promptly apply for permits and other local licenses necessary to complete the construction outlined in your Construction Plans. You are responsible for conforming your Premises to local ordinance and building codes, obtaining required permits, and constructing, remodeling, decorating, and otherwise outfitting the Premises to satisfy our specifications. After signing your Lease, you must promptly begin to develop and outfit your Shop in accordance with the Construction Plans we have approved, at your cost, including that you must promptly obtain all required zoning changes, planning consents, building, utility, sign and business permits and licenses necessary to lawfully open and operate your Shop. You may not modify the Construction Plans in any manner without our approval of such modifications. You must ensure that your Shop is designed and constructed in all respects in accordance with the Construction Plans we have approved. You must also, at your cost, to do all things necessary to develop and prepare your Shop for opening in accordance with your Franchise Agreement and our System Standards.
We estimate that you will begin operating your Shop by the earlier of eight months after the Lease is executed, or the first anniversary of the date you sign the Franchise Agreement. We may terminate the Franchise Agreement if you fail to open your Shop by such deadlines. The date that you open your Shop for business (your "Opening Date") will depend on several factors, including when: (i) you obtain our approval of your Premises, Construction Plans, and Lease, (ii) you obtain all necessary permits and licenses; (iii) you construct your Shop in accordance with your approved Construction Plans and our System Standards; (iv) you obtain and install all required fixtures, equipment, signage, décor, and other assets; (iv) you obtain all pre-opening inventory and supplies; (v) you and your Mandatory Trainees satisfy our training requirements; (vi) you obtain all required insurance policies; and (vii) you satisfy the other pre-opening requirements in your Franchise Agreement and obtain our approval to open.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–27)
What This Means (2025 FDD)
According to the 2025 FDD, the Franchise Agreement for a Jeni's Ice Creams Scoop Shop specifies the pre-opening purchase and lease obligations. Item 11 discusses the development and opening phase, stating that once Cream approves the lease, the franchisee must promptly apply for permits and other local licenses to complete construction. The franchisee is responsible for conforming the premises to local ordinances and building codes, obtaining required permits, and constructing, remodeling, decorating, and outfitting the premises to meet Cream's specifications.
After signing the lease, the franchisee must begin developing and outfitting the shop according to the approved construction plans, at their own cost. This includes obtaining necessary zoning changes, planning consents, and building, utility, sign, and business permits and licenses to lawfully open and operate the shop. The franchisee cannot modify the construction plans without Cream's approval and must ensure the shop is designed and constructed according to the approved plans.
The franchisee is also responsible for all things necessary to develop and prepare the shop for opening, in accordance with the Franchise Agreement and Cream's System Standards. The FDD estimates that the shop will begin operating within eight months after the lease is executed or by the first anniversary of signing the Franchise Agreement. The opening date depends on factors such as obtaining approvals, permits, licenses, constructing the shop, installing fixtures and equipment, obtaining inventory, completing training, securing insurance, and satisfying other pre-opening requirements in the Franchise Agreement.