Who bears the expense of altering the shop's appearance after termination of a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) if we do not exercise our option to purchase your Shop under Section 15.D below, promptly and at your own expense, make the alterations we specify to distinguish your Shop clearly from its former appearance and from other Jeni's Ice Creams Scoop Shops, including by removing all materials and signage bearing our Marks and removing from both the interior and exterior of the Premises all materials and components of our trade dress as we determine to be necessary in order to prevent public confusion and in order to comply with the non-competition provisions set forth in Section 15.C;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the franchisee is responsible for the expenses associated with altering the shop's appearance after the termination of a Cream franchise agreement. Specifically, the franchisee must take steps to distinguish the shop from its former appearance as a Cream location. This includes removing all materials and signage bearing Cream's trademarks and trade dress.
This obligation ensures that the public will not confuse the terminated franchise with an active Cream franchise. It also protects Cream's brand identity and prevents the former franchisee from unfairly benefiting from Cream's goodwill after the franchise agreement ends.
The FDD specifies that the franchisee must make these alterations promptly and at their own expense, if Cream does not exercise its option to purchase the shop. This includes removing all materials and signage bearing Cream's marks and removing from both the interior and exterior of the premises all materials and components of Cream's trade dress, as Cream determines necessary to prevent public confusion and comply with non-competition provisions.
This requirement is a standard practice in franchising. It ensures a clean break between the franchisor and franchisee, and protects the franchisor's brand and reputation. Prospective Cream franchisees should factor these potential costs into their financial planning, as they could represent a significant expense upon termination or expiration of the franchise agreement.