Does the FDD specify the exact System Standards for closing a Cream shop?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) cease to directly or indirectly identify yourself or your business as a current or former Jeni's Ice Creams Scoop Shop or as one of our current or former franchise owners (except in connection with other Jeni's Ice Creams Scoop Shops you operate in compliance with the terms of a valid Franchise Agreement with us) and take the action required to cancel or assign all fictitious or assumed name or equivalent registrations relating to your use of any Mark;
- (4) if we do not exercise our option to purchase your Shop under Section 15.D below, promptly and at your own expense, make the alterations we specify to distinguish your Shop clearly from its former appearance and from other Jeni's Ice Creams Scoop Shops, including by removing all materials and signage bearing our Marks and removing from both the interior and exterior of the Premises all materials and components of our trade dress as we determine to be necessary in order to prevent public confusion and in order to comply with the non-competition provisions set forth in Section 15.C;
- (5) cease using and, at our direction, either disable or transfer, assign, or otherwise convey to us full control of all Contact Information and Digital Presences that you used to operate your Shop or that displays any of the Marks or any reference to the franchise system (provided that all liabilities and obligations arising from any such Contact Information or Digital Presence prior to the date of the transfer, assignment, or conveyance to us will remain your sole responsibility in all respects, and any costs we incur in connection therewith will be indemnifiable under Section 16.D);
- (6) return to us or destroy (as we require) all items, forms, and materials containing any Mark or otherwise identifying or relating to Jeni's Ice Creams Scoop Shops, and any and all Confidential Information (including the Brand Manual and any and all customer data or other information from your Computer System);
- (7) comply with all other System Standards we establish from time to time (and all applicable laws) in connection with the closure and de-identification of your Shop, including as it relates to disposing of Personal Information, in any form, in your possession or the possession of any of your employees; and
- (8) give us evidence satisfactory to us of your compliance with these obligations.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream provides franchisees with System Standards that they must follow when closing their shop. These standards include ceasing to identify as a current or former Cream franchisee, making alterations to distinguish the shop from other Cream locations (if Cream does not exercise its option to purchase the shop), and removing all materials and signage bearing Cream's marks.
Additionally, franchisees must cease using and transfer control of all contact information and digital presences used to operate the shop to Cream. They are also required to return or destroy all items, forms, and materials containing any Cream mark or relating to Cream shops, including confidential information and customer data. Franchisees must comply with all System Standards established by Cream regarding the closure and de-identification of their shop, including those related to disposing of personal information. Finally, franchisees must provide Cream with satisfactory evidence of their compliance with these obligations.
These System Standards are put in place to protect the Cream brand and prevent public confusion after a franchise location closes. Franchisees bear the expense of altering the shop's appearance and removing branded materials, which could represent a significant cost. Cream also retains control over digital assets and customer data, ensuring consistency and protecting proprietary information.
It is important for prospective Cream franchisees to understand these obligations before signing a franchise agreement, as they will be responsible for adhering to these standards if they decide to close their shop. The FDD emphasizes the importance of following these procedures to ensure a smooth and legally compliant closure process.