Who bears the entire responsibility for achievement of the business plan developed for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 60 days after the Effective Date, you must prepare and give us a business plan including a projected schedule for Jeni's Ice Creams Scoop Shop development and detailed cost and revenue projections for your activities under this Agreement. At least 90 days before the start of each calendar year during the Term, you must update the business plan to cover both actual results for the previous year and projections for the then-current year. You acknowledge and agree that, while we may review and provide comments on the business plan and any updates you submit to us, regardless of whether we approve, disapprove, require revisions, or provide other comments with respect to the business plan or any updated business plan, we take no responsibility for and make no guarantees or representations, expressed or implied, with respect to your ability to meet the business plan or to achieve the results set forth therein. You bear the entire responsibility for achievement of the business plan you develop.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees bear the entire responsibility for achieving the business plan they develop. Within 60 days after the franchise agreement's effective date, the franchisee must prepare and submit a business plan to Cream. This plan should include a projected schedule for Scoop Shop development, along with detailed cost and revenue projections.
At least 90 days before each calendar year's start during the franchise term, the franchisee must update the business plan. These updates should cover actual results from the previous year and projections for the current year. While Cream may review and comment on the business plan and its updates, the company explicitly states that it takes no responsibility and offers no guarantees regarding the franchisee's ability to meet the plan or achieve the projected results.
This means that even though Cream provides feedback, the onus is entirely on the franchisee to ensure the business plan is realistic and achievable. Prospective franchisees should carefully consider their capabilities and resources when developing their business plans, as their success hinges on their own efforts and execution. Cream's disclaimer underscores the importance of thorough planning and diligent management by the franchisee.