What agreement must the franchisee sign regarding the termination of the Cream franchise agreement if Cream purchases the Shop?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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You acknowledge that we are not required to offer you a renewal franchise if you and/or your owners fail to meet the conditions set forth in this Section, regardless of whether we had or chose to exercise the right to terminate this Agreement during the Term under Section 14.C.
B. ACQUIRING A RENEWAL FRANCHISE.
If we agree to grant you a renewal franchise after we receive your notice that you wish to renew your franchise upon the expiration of the Term, our notice may describe certain remodeling, maintenance, expansion, improvements, technology upgrades, trade dress updates, and/or modifications required to bring your Shop into compliance with then-applicable System Standards for new Jeni's Ice Creams Scoop Shops, and state the actions you must take to correct operating deficiencies and the time period in which you must correct these deficiencies. If our notice states that you must remodel your Shop and/or must cure certain deficiencies of your Shop or its operation as a condition to our granting you a renewal franchise, and you fail to complete the remodeling and/or to cure those deficiencies, we may revoke any approval of such a renewal franchise we may have awarded. If you fail to notify us of your election to acquire a renewal franchise within the prescribed time period, we need not grant you a renewal franchise.
14. TERMINATION OF AGREEMENT.
A. AUTOMATIC.
This Agreement and all rights granted to you in this Agreement shall automatically terminate without notice if: (1) you make an assignment for the benefit of creditors; (2) you consent to the appointment of a receiver, trustee, or liquidator of all or the substantial part of your property;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, if Cream agrees to grant a renewal franchise after receiving notice from the franchisee wishing to renew upon the expiration of the term, Cream's notice may describe required remodeling, maintenance, expansion, improvements, technology upgrades, trade dress updates, and/or modifications to bring the Shop into compliance with then-applicable System Standards for new Jeni's Ice Creams Scoop Shops. The notice will also state the actions the franchisee must take to correct operating deficiencies and the time period in which they must be corrected.
If the notice states that the franchisee must remodel the Shop and/or cure certain deficiencies of the Shop or its operation as a condition to Cream granting a renewal franchise, and the franchisee fails to complete the remodeling and/or to cure those deficiencies, Cream may revoke any approval of such a renewal franchise that it may have awarded. If the franchisee fails to notify Cream of their election to acquire a renewal franchise within the prescribed time period, Cream need not grant a renewal franchise.
To renew the Cream franchise agreement, the franchisee must satisfy several conditions, including signing the franchise agreement and all other ancillary documents and guaranties Cream then uses to grant franchises for Jeni's Ice Creams Scoop Shops. These documents may be modified as necessary to reflect that it is for a renewal franchise and may contain provisions that differ materially from those contained in the current agreement, including changes to the Royalty, Brand Fund Contribution, and Protected Territory. The franchisee and their owners must also agree to sign, in a form satisfactory to Cream, a general release of any and all claims (except for claims which cannot be released or waived pursuant to an applicable franchise statute) against Cream and its owners, affiliates, officers, directors, employees, agents, successors, and assigns.