What are the compliance requirements a Cream franchisee must meet to maintain exclusive rights within the Development Area?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ner in any such dealings without the necessity of any discussions with any other person, and we will not be held liable for any actions taken by you or otherwise, based upon any decision or actions of the Principal Owner. You represent and agree that the person acting as your Principal Owner has full power and authority to enter into this Agreement and any other documents to which you are a party, and to make binding decisions on your behalf.
D. DEVELOPMENT AREA AND RESERVATION OF RIGHTS.
The Development Rights may only be exercised for Jeni's Ice Creams Scoop Shops to be located in the Development Area. As long as you are in compliance with this Agreement and all Franchise Agreements (defined below) signed pursuant to this Agreement, and except as set forth in this Section 1.D, we will not, during the Term, operate or grant the right to anyone else to operate a Jeni's Ice Creams Scoop Shops within the Development Area, or grant Development Rights to anyone else to be exercised with your Development Area.
For the avoidance of doubt, we reserve for ourselves and our affiliates all rights not expressly granted to you in this Agreement and the right to do all things that we do not expressly agree in this Agreement not to do, in each case, without compensation to you, without regard to proximity to your Development Area, and on such terms and conditions as we deem appropriate. For example, and without limitation, we and our affiliates may, ourselves or through authorized third parties:
- (1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the System, at any location outside the Development Area, on such terms and conditions we deem appropriate;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, a Cream franchisee must comply with several requirements to maintain exclusive rights within their Development Area. Cream grants the franchisee the right to develop and operate a specified number of Jeni's Ice Creams Scoop Shops within a defined geographic area. To maintain these Development Rights, the franchisee must comply with the Development Agreement and all Franchise Agreements signed under it. As long as the franchisee is in compliance, Cream will not operate or grant the right to anyone else to operate a Jeni's Ice Creams Scoop Shop within the Development Area. Cream also will not grant Development Rights to anyone else to be exercised within the franchisee's Development Area.
To maintain exclusivity, the Cream franchisee must adhere to the Development Schedule outlined in Attachment B of the Development Agreement. This schedule specifies the number of Jeni's Ice Creams Scoop Shops the franchisee must develop and open within defined Development Periods. For each Jeni's Ice Creams Scoop Shop, the franchisee must secure Cream's approval of the proposed site, execute Cream's current form of Franchise Agreement, pay all associated fees, secure occupancy rights to the premises, and obtain Cream's approval to open the Scoop Shop. The Scoop Shop must then be open and operating in full compliance with its Franchise Agreement.
Failure to comply with the Development Schedule can result in Cream terminating or reducing the size of the Development Area, and/or terminating the territorial protections. If the franchisee fails to meet the Development Schedule, Cream and its affiliates may establish or operate a Jeni's Ice Creams Scoop Shop in the franchisee's current or former Development Area. The franchisee must also submit a business plan within 60 days of the Effective Date, including a projected schedule for Scoop Shop development and detailed cost and revenue projections. This plan must be updated at least 90 days before the start of each calendar year. Franchisees must also send reports of their business activities, including information about site selection efforts and the status of development, on a monthly basis until the first Scoop Shop is open, and then quarterly thereafter.