Where in the Area Development Agreement can I find information on site development and other pre-opening requirements for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
On your execution of this Agreement, you will also execute the Franchise Agreement for your first Jeni's Ice Creams Scoop Shop (the "Franchise Agreement") to be developed and opened in satisfaction of the Development Schedule (though provided you have paid your Development Fee in full as provided in Section 2.A, no initial franchise fee will be owed under that Franchise Agreement). For each subsequent Jeni's Ice Creams Scoop Shop, you will sign our then-current form of Franchise Agreement to develop and operate that Jeni's Ice Creams Scoop Shop when we approve the site for that Shop. After signing a Franchise Agreement for any Jeni's Ice Creams Scoop Shop, you must open and operate each Jeni's Ice Creams Scoop Shop according to the terms of that Franchise Agreement. The terms of the Franchise Agreement you sign may differ substantially from the terms contained in the Franchise Agreement in effect on the Effective Date. If you wish to enter into a Franchise Agreement using any affiliated Entity, you must obtain our approval of such Entity and its owners and officers, under our then-current franchise approval process.
You must receive our approval of any site for a Jeni's Ice Creams Scoop Shop that you propose to develop in your Development Area before you enter into any lease or other agreement to secure the site. You agree to give us all information and materials we request to assess each Jeni's Ice Creams Scoop Shop that you propose to develop, as well as your financial and operational ability to develop and operate the proposed Jeni's Ice Creams Scoop Shop. We have the absolute right to disapprove any proposed development for any reason, including if: (1) it or you do not meet our then-current criteria for new franchise development, or (2) if you or your affiliates are not then in compliance with this Agreement or any Franchise Agreements with us.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–27)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Area Development Agreement outlines several key aspects of site development and pre-opening requirements. Section 2.C, titled "Approval of Proposed Development," details the process for Cream's approval of any proposed site for a Jeni's Ice Creams Scoop Shop within the Development Area. Before entering into any lease or agreement to secure a site, the developer must obtain Cream's approval and provide all requested information and materials to assess the proposed Scoop Shop, including financial and operational capabilities. Cream retains the absolute right to disapprove any proposed development if it doesn't meet their criteria or if the developer is not in compliance with the Area Development Agreement or any Franchise Agreements.
Attachment B of the Area Development Agreement contains the Development Schedule, which specifies the timeline for developing Jeni's Ice Creams Scoop Shops. This schedule may include multiple Development Periods, each requiring the developer to open a certain number of Scoop Shops. The developer must meet all conditions described in Section 2.C by the end of each Development Period and cannot exceed the cumulative number of Scoop Shops outlined in the Development Schedule. Cream emphasizes that the Development Schedule is not a guarantee of sufficient sites or market support within the Development Area, and they rely on the developer's independent investigation to ensure they can meet the development obligations.
Item 11 of the FDD also references the Area Development Agreement (Section 2.C) and Franchise Agreement (Sections 2.A) regarding site approval. Before opening a shop, Cream will review and approve or disapprove a proposed site. Additionally, Cream will review and approve or disapprove the Construction Plans and Lease for the shop. The franchisee is responsible for conforming the premises to local ordinances and building codes, obtaining required permits, and constructing and outfitting the premises to meet Cream's specifications. Once the Lease is approved, the franchisee must promptly apply for permits and other local licenses necessary to complete the construction outlined in the Construction Plans.