What is the Development Fee for Cream in lieu of?

According to Cream's 2025 Franchise Disclosure Document, the Development Fee is paid in lieu of the initial franchise fee. Specifically, the Development Fee is in place of the initial franchise fees that would otherwise be due for each Jeni's Ice Creams Scoop Shop developed under the Development Schedule. This fee is specified in Attachment B of the Development Agreement and is considered fully earned by Cream upon the signing of the agreement.

For a prospective Cream area developer, this means that instead of paying an initial franchise fee for each individual scoop shop opened within the development area, a single Development Fee is paid upfront. This fee covers the initial franchise fees for all scoop shops planned under the Development Schedule. The Development Schedule itself is outlined in Attachment B and details the number of Jeni's Ice Creams Scoop Shops the developer agrees to open within specified time periods.

It is important to note that the Development Schedule is not a guarantee from Cream that the development area can support the specified number of scoop shops or that suitable sites will be available. Cream relies on the developer's independent investigation to determine the feasibility of meeting the development obligations. Therefore, prospective developers should conduct thorough market research and site analysis before committing to a Development Schedule and paying the Development Fee.

Furthermore, the Franchise Agreement for the first Jeni's Ice Creams Scoop Shop is executed upon signing the Development Agreement. Provided the Development Fee has been paid in full, no initial franchise fee will be owed under that initial Franchise Agreement. For each subsequent scoop shop, the developer will sign Cream's then-current form of Franchise Agreement when the site for that shop is approved.