What is the definition of 'Item 19 Shops' in the Cream FDD?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
As of December 31, 2024, there were a total of 87 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States. Of the 87 corporate-owned Jeni's Ice Creams Scoop Shops, 2 opened during 2024 and were not operating for the entirety of 2024, and 2 operated on a limited seasonal basis and therefore were not operating for the entirety of 2024. The data presented in this Item 19 is based
on the remaining 83 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States for the entirety of the 2024 calendar year (the "Item 19 Shops"). We had no franchised outlets operating as of the end of our most recent fiscal year and are therefore not able to present results for franchised outlets. The information for the Item 19 Shops is divided into quartiles based on annual Net Profit (defined below) for the 2024 calendar year.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, 'Item 19 Shops' refers to a specific subset of corporate-owned Jeni's Ice Creams Scoop Shops used to generate the financial performance representations in Item 19. As of December 31, 2024, there were 87 corporate-owned Jeni's Ice Creams Scoop Shops. However, the financial data presented in Item 19 is based only on 83 of these shops.
The 83 shops included in the 'Item 19 Shops' designation operated for the entirety of the 2024 calendar year. The four corporate-owned shops excluded from this data set either opened during 2024 and thus did not operate for the full year, or operated on a limited seasonal basis. This distinction is important because the financial performance of shops operating for only part of the year may not accurately reflect the potential performance of a full-time Cream franchise.
Cream had no franchised outlets operating as of the end of their most recent fiscal year, so the financial performance data in Item 19 is based solely on these corporate-owned 'Item 19 Shops'. The financial information for these shops is further divided into quartiles based on annual Net Profit for the 2024 calendar year, providing a range of performance metrics for prospective franchisees to consider.