factual

Must the appointed Shopkeeper complete Cream's Initial Training Program?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

to the Franchise Agreement. You must obtain our written consent prior to changing the Principal Owner.

You are solely responsible for the management, direction and control of your Shop and all day-to-day operations of your Shop. You must supervise the management and day-to-day operation of your Shop and continuously exert best efforts to promote and enhance your Shop. If you (or your Principal Owner) does not wish to manage the operation of your Shop on a day-to-day basis, you must obtain our approval of any person that you wish to engage to supervise the management of your Shop (each a "Shopkeeper"). We may establish conditions for approving any such Shopkeeper, which may include the completion of training, confirmation that such Shopkeeper will have no competitive business, and/or execution of a non-disclosure agreement. During any period in which no Shopkeeper is approved (including because the Shopkeeper resigns or otherwise indicates to us or you that he or she wishes to cease acting as your Shopkeeper, or we disapprove of your Shopkeeper for any reason), you (or your Principal Owner) must supervise the day-to-day operations of your Shop. Your Shop must always be under the direct on-site supervision of one or more persons who we have approved and who

have completed the Initial Training Program to our satisfaction. Each Jeni's Ice Creams Scoop Shop must have a separate Shopkeeper.

If you are a legal business entity, each of your direct and indirect owners with a 10% or greater ownership interest in you must execute a guaranty in the form personally to be bound, jointly and severally, by all provisions of the Franchise Agreement and any ancillary agreements between you and us. Our current form of guaranty is attached as Attachment D to the Franchise Agreement. If any owner is an individual, his or her spouse must consent in writing to that owner's execution of the guaranty.

ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL

Products and Services

You must: (i) offer and sell from your Shop all of the products and services that we specify; (ii) not offer or sell at your Shop, the Premises, or any other location any products or services we have not authorized; and (iii) discontinue selling and offering for sale any products or services that we at any time disapprove. You will offer for sale and sell at your Shop authorized products and services only in the manner (including days and hours of operation) and at the locations we have prescribed. We may authorize one or more Jeni's Ice Creams Scoop Shops to offer additional, different, or modified attractions, products, or services, and we are under no obligation to authorize every Jeni's Ice Creams Scoop Shop to offer the same products or services. We may condition our approval for any such products or services on our then-current criteria, and/or additional terms and conditions that we establish.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–51)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, if a franchisee (or their Principal Owner) does not manage the Cream shop's day-to-day operations, they must obtain Cream's approval for a Shopkeeper. Cream may require the Shopkeeper to complete training as a condition of approval. Furthermore, the Cream shop must always be under the direct, on-site supervision of someone approved by Cream who has satisfactorily completed the Initial Training Program. Each Cream shop must have a separate Shopkeeper.

If a franchisee engages any new Shopkeepers during the franchise term, Cream may require that the new Shopkeeper satisfactorily complete a training program that Cream has approved before they can provide services at the Cream shop. If Cream does not approve the franchisee to offer training to Shopkeepers, or if the franchisee is not in compliance with Cream's System Standards, Cream may require the Shopkeepers to complete the then-current Initial Training Program. Cream may also charge its then-current training fee for the Initial Training Program, which is currently $1,000 per attendee, plus costs and expenses.

The franchisee is responsible for ensuring that all employees and personnel, including Shopkeepers, are appropriately trained to operate the Cream shop according to the Franchise Agreement and System Standards, regardless of any training or support Cream provides. The franchisee must pay all expenses, including wages, transportation, food, lodging, and workers' compensation insurance, for themselves, their Mandatory Trainees, and any other personnel during all meetings and training courses and programs, including the Initial Training Program.

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.