What is the Development Fee for a Cream franchise, and where is it specified in the agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
nt of such an acquisition, we and/or the acquirer and its affiliates will have the right to continue to establish and operate, and authorize others to establish and operate, such businesses, at any location in the world, including in the Development Area); and
- (7) engage in all other activities not expressly prohibited by this Agreement, at any location in the world, including in the Development Area.
2. EXERCISE OF DEVELOPMENT RIGHTS.
A. DEVELOPMENT FEE.
On the Effective Date, you must pay us an area development fee (the "Development Fee") specified on Attachment B of this Agreement. The Development Fee is fully earned by us when you sign this Agreement. The Development Fee will be in lieu of the initial franchise fee due for the Jeni's Ice Creams Scoop Shops that you develop pursuant to the Development Schedule, which would otherwise be owed pursuant to each applicable Franchise Agreement.
B. DEVELOPMENT SCHEDULE.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if you sign an Area Development Agreement, you must pay Cream an area development fee (the "Development Fee") specified on Attachment B of the agreement. This fee is paid on the effective date of the agreement. Cream considers the Development Fee fully earned upon signing the agreement.
The Development Fee is in place of the initial franchise fee that would otherwise be due for each Jeni's Ice Creams Scoop Shop developed under the Development Schedule. This means that instead of paying an initial franchise fee for each individual location, the Development Fee covers these initial fees for shops developed according to the agreed-upon schedule.
Attachment B to the Area Development Agreement contains the Development Schedule, which outlines the number of Jeni's Ice Creams Scoop Shops the developer is expected to open and the periods within which they must be opened. The franchisee must meet all conditions for each shop by the end of its applicable Development Period. The franchisee cannot exceed the cumulative number of shops specified in the Development Schedule.