What is Cream's Development Schedule related to?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Attachment B to this Agreement sets forth the schedule that you are hereby agreeing to satisfy as it relates to the development of Jeni's Ice Creams Scoop Shops (your "Development Schedule"), which may include one or more periods for you to develop and open a specified number of Jeni's Ice Creams Scoop Shops (each a "Development Period"). You must satisfy all of the conditions described in Section 2.C below for each Jeni's Ice Creams Scoop Shop in your Development Schedule by the
end of the applicable Development Period. You may not open more than the cumulative number of Jeni's Ice Creams Scoop Shops shown in your Development Schedule. The Development Schedule is not our representation, express or implied, that the Development Area can support, or that there are or will be sufficient sites for, the number of Jeni's Ice Creams Scoop Shops specified in the Development Schedule or during any particular Development Period. We are relying on your representation that you have conducted your own independent investigation and have determined that you can satisfy the development obligations of the Development Schedule.
C. APPROVAL OF PROPOSED DEVELOPMENT.
On your execution of this Agreement, you will also execute the Franchise Agreement for your first Jeni's Ice Creams Scoop Shop (the "Franchise Agreement") to be developed and opened in satisfaction of the Development Schedule (though provided you have paid your Development Fee in full as provided in Section 2.A, no initial franchise fee will be owed under that Franchise Agreement). For each subsequent Jeni's Ice Creams Scoop Shop, you will sign our then-current form of Franchise Agreement to develop and operate that Jeni's Ice Creams Scoop Shop when we approve the site for that Shop. After signing a Franchise Agreement for any Jeni's Ice Creams Scoop Shop, you must open and operate each Jeni's Ice Creams Scoop Shop according to the terms of that Franchise Agreement. The terms of the Franchise Agreement you sign may differ substantially from the terms contained in the Franchise Agreement in effect on the Effective Date. If you wish to enter into a Franchise Agreement using any affiliated Entity, you must obtain our approval of such Entity and its owners and officers, under our then-current franchise approval process.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Development Schedule outlined in Attachment B of the Development Agreement pertains to the development of Jeni's Ice Creams Scoop Shops. This schedule specifies the timeline and number of shops a franchisee is expected to develop and open, potentially including multiple Development Periods.
Cream requires franchisees to meet specific conditions for each shop within the Development Schedule by the end of each Development Period. Franchisees are prohibited from exceeding the cumulative number of shops outlined in the Development Schedule. Cream emphasizes that the Development Schedule is not a guarantee of the area's ability to support the specified number of shops or the availability of suitable sites. Cream relies on the franchisee's independent investigation to determine their capacity to fulfill the Development Schedule obligations.
Failure to comply with the Development Schedule can result in Cream's right to terminate or reduce the Development Area, or remove territorial protections. However, this does not waive Cream's right to terminate the agreement for non-compliance. Within 60 days of the agreement's effective date, franchisees must provide Cream with a business plan that includes a projected schedule for shop development, along with detailed cost and revenue projections. This plan must be updated annually, at least 90 days before each calendar year's start, to reflect actual results and projections.