Besides modifications to the Cream Brand Manual and System Standards, how can the Cream Franchise Agreement be modified?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) you and your owners sign the franchise agreement and all other ancillary documents and guaranties we then use to grant franchises for Jeni's Ice Creams Scoop Shops (modified as necessary to reflect the fact that it is for a renewal franchise), which may contain provisions that differ materially from those contained in this Agreement, including changes to your Royalty, Brand Fund Contribution, and Protected Territory;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream Franchise Disclosure Document, the franchise agreement can be modified when a franchisee seeks to renew their franchise term. To renew, a franchisee must sign the franchise agreement and other ancillary documents that Cream then uses to grant franchises. These documents may be modified as necessary to reflect that it is for a renewal franchise.
Cream's renewal agreement may contain provisions that differ materially from those in the original agreement, including changes to the royalty fees, brand fund contributions, and protected territory. This means that upon renewal, Cream has the opportunity to change key financial and operational terms, which could significantly impact the franchisee's business.
This is a fairly standard practice in franchising, as franchise systems evolve over time. However, prospective Cream franchisees should be aware that the terms of their franchise agreement are not guaranteed to remain the same upon renewal. It would be prudent to discuss with Cream what types of changes have been implemented in past renewal agreements to fully understand the potential future obligations.