What is the 'Development Area' in the context of a Cream Area Development Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may also grant qualified persons the right to obtain certain territorial protections within a specified area (the "Development Area") if they agree to develop and open multiple Jeni's Ice Creams Scoop Shops according to an agreed upon schedule (the "Development Schedule"). Our current form of Area Development Agreement is attached to this Disclosure Document as Exhibit B-2. Currently, we only offer an Area Development Agreement for a Development Schedule of three to five Jeni's Ice Creams Scoop Shops. The Area Development Agreement does not grant the right to develop or open a Jeni's Ice Creams Scoop Shop at any specific location within the Development Area. To develop a Jeni's Ice Creams Scoop Shop within the Development Area, you must sign our then-current form of Franchise Agreement to develop and operate that Jeni's Ice Creams Scoop Shop. You must sign a Franchise Agreement for your first Jeni's Ice Creams Scoop Shop at the same time you execute the Area Development Agreement. For each subsequent Jeni's Ice Creams Scoop Shop, you will sign our thencurrent form of Franchise Agreement to develop and operate that Jeni's Ice Creams Scoop Shop when we approve the site for that Shop. We and you will agree on the Development Area and Development Schedule before you sign the Area Development Agreement.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–10)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the 'Development Area' refers to a specific geographic area where a qualified person is granted certain territorial protections, provided they agree to develop and open multiple Cream Scoop Shops according to an agreed-upon schedule. Cream currently only offers Area Development Agreements for a development schedule of three to five Scoop Shops.
It is important to note that the Area Development Agreement does not grant the right to develop or open a Cream Scoop Shop at any specific location within the Development Area. To develop a Scoop Shop within the Development Area, a franchisee must sign Cream's then-current form of Franchise Agreement to develop and operate that Scoop Shop. A Franchise Agreement for the first Scoop Shop must be signed at the same time the Area Development Agreement is executed.
For each subsequent Scoop Shop, the franchisee will sign Cream's then-current form of Franchise Agreement to develop and operate that Scoop Shop when Cream approves the site for that Shop. The Development Area and Development Schedule will be agreed upon by Cream and the franchisee before the Area Development Agreement is signed. This means that while the Area Development Agreement provides territorial protections, each individual Cream location still requires a separate Franchise Agreement and site approval.