When is the Development Fee fully earned by Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the development fee is fully earned by Cream when the development agreement is signed. The development fee is specified in Attachment B of the agreement. This fee is in place of the initial franchise fee that would be due for each Jeni's Ice Creams Scoop Shop developed under the development schedule.
This means that once a prospective franchisee signs the area development agreement, Cream has earned the development fee, regardless of whether the franchisee successfully opens any Cream locations. This is a non-refundable fee. The franchisee is responsible for independently investigating and determining if they can meet the development obligations outlined in the development schedule.
Prospective franchisees should carefully consider the development schedule and their ability to meet its requirements before signing the agreement and paying the development fee. It is important to conduct thorough due diligence to ensure the development area can support the planned number of Cream locations and that sufficient sites are available.