factual

Can changes to Cream's System Standards obligate a franchisee to invest additional capital?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

for your Shop, including criteria for your insurance carriers; and

  • (15) any other aspects of operating and maintaining your Shop that we determine to be useful to preserve or enhance the efficient operation, image or goodwill of the Marks and Jeni's Ice Creams Scoop Shops.

You understand that the System will continue to evolve during the Term and the System Standards may change periodically. These modifications may obligate you to invest additional capital in your Shop and/or incur higher operating costs. You agree to implement any changes to your Shop in accordance with our System Standards within the time period we request, including by purchasing any additional or modified equipment, inventory, or other products or supplies, using alternative suppliers, making changes to signage and advertising materials, offering additional or modified products or services, changing marketing or business strategies, and/or updating the Computer System. You will be solely responsible for the costs of implementing all changes to your Shop.

You acknowledge and agree that complete and detailed uniformity might not be possible or practical under varying conditions, and that we specifically reserve the right to vary System Standards

for any franchise owner based on the peculiarities of any condition that we consider important to that franchise owner's successful operation or preserving the goodwill of the System and Marks. We may choose not to authorize similar variations or accommodations to you or other franchise owners.

B. CONDITION OF YOUR SHOP.

You agree to maintain the condition and appearance of your Shop and the Premises, and all equipment, signage, furniture, fixtures, and other operating assets at the Shop or the Premises, to meet the highest standards of professionalism, cleanliness, sanitation, efficiency, courteous service, and pleasant ambiance. Without limiting the foregoing, you agree to take the following actions during the Term at your expense: (1) cleaning, repainting, and redecorating of the interior and exterior of the Premises; (2) interior and exterior repair of the Premises; and (3) repair or replacement of damaged, worn-out, or obsolete equipment, signage, furniture, fixtures, and other operating assets at intervals that we may prescribe (or, if we do not prescribe an interval, as such items needs to be repaired or replaced). You understand that we may periodically require you to renovate, refurbish, remodel, or replace, at your own expense, the real and personal property and equipment used in operating your Shop, and/or make one or more additional and/or material improvements to your Shop, when reasonably required by us to comply with our System Standards.

C. PRODUCTS AND SERVICES YOUR SHOP OFFERS.

You agree that you will: (1) offer and sell from your Shop all of the products and services that we periodically specify; (2) not offer or sell at your Shop, the Premises, or any other location any products or services we have not authorized using our Marks or System; and (3) discontinue selling and offering for sale any products or services that we at any time disapprove.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, changes to the System Standards may require a franchisee to invest additional capital. Cream franchisees may be obligated to invest further in their shop and/or incur higher operating costs due to modifications to the System Standards. These changes may include purchasing additional or modified equipment, inventory, or other products or supplies, using alternative suppliers, making changes to signage and advertising materials, offering additional or modified products or services, changing marketing or business strategies, and/or updating the Computer System. The franchisee is solely responsible for the costs of implementing these changes.

Cream franchisees must maintain their shop and premises to meet specific standards of professionalism, cleanliness, and efficiency. This includes cleaning, repainting, and repairing both the interior and exterior of the premises. Franchisees are also responsible for repairing or replacing damaged or obsolete equipment, signage, furniture, and fixtures. Cream may also periodically require franchisees to renovate, refurbish, remodel, or replace the real and personal property and equipment used in operating their shop, and/or make additional improvements to their shop to comply with System Standards.

During the renewal of the franchise agreement, Cream may require remodeling, maintenance, expansion, improvements, technology upgrades, trade dress updates, and/or modifications to bring the shop into compliance with the then-applicable System Standards for new Cream shops. The notice for renewal may state the actions needed to correct operating deficiencies and the time period to correct these deficiencies. Failure to complete the remodeling or correct deficiencies may result in Cream revoking approval of the renewal franchise.

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.