What conditions must be met for Cream to approve a franchise transfer?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
out our prior written consent. You shall not use or authorize the use of, and no third party shall on your behalf use, any written materials to advertise or promote the transfer of your Shop or of any ownership interest in you without our prior written approval.
C. CONDITIONS FOR APPROVAL OF TRANSFER.
You may not transfer this Agreement before your Shop has opened for business. Thereafter, we will approve a transfer if all of the following requirements are met:
(1) you submit an application in writing requesting our consent and providing us all information or documents we request about the transferee and its owners that we request to evaluate their ability to satisfy their respective obligations under our then-current form of franchise agreement and any documents ancillary thereto, and each such person must have completed and satisfied all of our application and certification requirements, including the criteria that neither the transferee nor its owners (if the transferee is an Entity) or affiliates have an ownership interest in or perform services for a Competitive Business;
(2) you and your owners have not violated any provision of this Agreement or any other agreement with us or our affiliates during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer, including that you have paid all Royalties, Brand Fund Contributions, and other amounts owed to us, our affiliates, and third-party suppliers, and have submitted all required reports and statements;
(3) you provide us executed versions of any documents executed by you (or your owners) and transferee (and its owners) to effect the transfer, and all other information we request about the proposed transfer, and such transfer meets all of our requirements, including terms, closing date, purchase price, amount of debt and payment terms, and we have determined that the purchase price and other terms of the transfer will not adversely affect the operation of your Shop;
(4) you (and your owners) and the transferee (and its owners) sign all of the documents we are then requiring in connection with a transfer, in a form satisfactory to us, including: (i) a release of any and all claims (except for claims which cannot be released or waived pursuant to applicable law) against us and our affiliates and our and their owners, officers, directors, employees, and agents, and (ii) covenants that you and your transferring owners agree to satisfy all post-termination obligations under this Agreement;
(5) all persons required to complete training under the transferee's franchise agreement satisfactorily complete our training program, and transferee has paid all costs and expenses we incur to provide the training program to such persons;
(6) if the proposed transfer requires notice to or approval from the landlord of the Premises, or any other action under the terms of the Lease, you have taken such appropriate action and delivered us evidence of the same;
(7) you have corrected any existing deficiencies of your Shop of which we have notified you, and/or the transferee agrees to upgrade, remodel, and refurbish your Shop in accordance with our then-current specifications for Jeni's Ice Creams Scoop Shops within the time period we specify following the date of the transfer and the transferee agrees to escrow an amount we approve for payment of the required upgrade, remodel or refurbishment;
(8) the transferee must (if the transfer is of this Agreement or your Shop), sign our then-current form of franchise agreement and related documents, any and all of the provisions of which may differ materially from any and all of those contained in this Agreement, including the Royalty and the Brand Fund Contribution; provided, that the term of the new franchise agreement signed will equal the then-remaining Term;
(9) the transferee(s) must (if the transfer is any beneficial or ownership interest in you) (i) sign our then-current form of guaranty undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us, and (ii) provide us with an updated Attachment A;
- (10) you pay us a transfer fee equal to $25,000; and
(11) you provide us the evidence we request to sho
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, there are numerous conditions that must be met for Cream to approve a franchise transfer. The franchisee must submit a written application requesting consent, providing all required information about the transferee and its owners. The transferee and its owners must meet Cream's application and certification requirements, and they cannot have an ownership interest in or perform services for a competitive business.
Furthermore, the franchisee and their owners must not have violated any provision of the Franchise Agreement or any other agreement with Cream or its affiliates during the 60-day period before requesting consent and the period between the request and the transfer's effective date. All executed documents related to the transfer must be provided to Cream, and the transfer terms, including the closing date, purchase price, debt amount, and payment terms, must meet Cream's requirements. Cream must also determine that the purchase price and terms will not adversely affect the transferee's ability to fulfill development rights.
Additional conditions include the franchisee, the transferee, and their owners signing all required documents, including a release of claims against Cream and its affiliates, and agreeing to satisfy all post-termination obligations. All individuals required to complete training must satisfactorily complete Cream's training program, with the transferee covering all associated costs. If the transfer requires landlord approval or any action under the lease terms, the franchisee must take appropriate action and provide evidence of it to Cream. Any existing shop deficiencies must be corrected, or the transferee must agree to upgrade, remodel, and refurbish the shop according to Cream's current standards, potentially requiring an escrow for the upgrade costs. The transferee must sign Cream's current form of franchise agreement and related documents, which may differ materially from the original agreement, and pay a $25,000 transfer fee. Finally, the franchisee must provide evidence that all necessary measures have been taken to effect the transfer, including transferring or obtaining necessary business licenses, insurance policies, and material agreements in accordance with Cream's System Standards.