Where in the Franchise Agreement can I find information about compliance with standards and policies/operating manual for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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Assistance During the Operation of Your Shop
During your operation of your Shop, we or our designees will:
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- Subject to limitations on scheduling, availability, and similar resources, we will provide you with general advice regarding the operation of your Shop (Franchise Agreement − Section 4.D).
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- Continue to make our Brand Manual available to you (Franchise Agreement − Section 4.E).
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- Let you use our Marks and certain copyrighted and copyrightable materials in connection with the operation of your Shop (Franchise Agreement – Section 5).
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- Approve or disapprove advertising materials (Franchise Agreement Section 9.C).
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- Approve or disapprove alternative vendors (Franchise Agreement Section 8.F).
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- Administer the Brand Fund pursuant to the terms of the Franchise Agreement (Franchise Agreement – Section 9.B).
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- Providing you our mandatory specifications and procedures for bookkeeping, accounting, and other reporting, including our standard chart of accounts (Franchise Agreement – Section 10)
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- Periodically set a maximum or minimum price that you may charge for products and services offered by your Shop. We may also require you to comply with an advertising policy which will prohibit you from advertising any price for a product or service that is different than our suggested retail price. (Franchise Agreement – Section 8.I) (See Item 16).
Brand Manual
We will make our System Standards and other suggested specifications, standards and procedures, and information for the operation of Jeni's Ice Creams Scoop Shops available to you during the term of the Franchise Agreement, which may include one or more separate manuals, newsletters, memos, or bulletins, as well any audio or video content, and/or other content available through or distributed by any Digital Presence or other electronic or digital means (collectively, the "Brand Manual"). We will offer you the opportunity to view our Brand Manual before buying this franchise upon your request.
Advertising and Promotion
Grand Opening Advertising. You must spend at least $20,000 for a grand opening advertising program for your Shop. You must spend this amount in addition to all other amounts you must spend on advertising under the Franchise Agreement. The amount you spend on grand opening advertising will not count towards your Brand Fund Contribution (defined below). You must submit a plan for your grand opening marketing program to us for our approval at least 75 days before your expected Opening Date, and to complete all grand opening advertising pursuant to the plan we have approved. You must also use any media, materials, programs, and strategies that we require in connection with the grand opening advertising program.
Brand Fund. We have established a brand promotion fund (the "Brand Fund") to administer certain advertising, marketing, and public relations programs for the System, the Jeni's® brand, and the promotion of Jeni's Ice Creams Scoop Shops. You must contribute to the Brand Fund the amount that we prescribe (the "Brand Fund Contribution"). Currently, the Brand Fund Contribution is 2% of Net Sales. We may modify the amount of the Brand Fund Contribution with 30 days prior notice to you, in an amount up to 4% of Net Sales.
We are not required to spend any amount on marketing within any particular market. We will have exclusive control over all programs and services administered by the Brand Fund, including over the creative concepts, materials, and campaigns and their geographic market, media placement and allocation. The Brand Fund may pay for preparing and producing video, audio, and written materials and electronic media;
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–27)
What This Means (2025 FDD)
According to the 2025 FDD, details regarding compliance with Cream's standards, policies, and operating manual can be found within the Franchise Agreement, specifically in sections 4.D, 4.E, 5, 9.C, 8.F, 9.B, 10 and 8.I. These sections outline various aspects of the franchisee's obligations and the franchisor's rights concerning the operation of the Cream shop. The Brand Manual, which contains mandatory specifications, standards, operating procedures, and rules, is a key document that franchisees must adhere to.
The Brand Manual for Cream, as stated in the FDD, may be delivered through various means, including physical manuals, newsletters, memos, bulletins, audio, video, digital presence, or other electronic methods. Cream may modify the Brand Manual periodically to reflect changes in System Standards. Franchisees are responsible for monitoring any Digital Presence for updates to the Brand Manual. The Brand Manual and any access credentials are part of Confidential Information.
Cream franchisees must operate their shops according to the standards and specifications outlined in the Brand Manual and the Franchise Agreement. This includes adhering to mandatory specifications, standards, operating procedures, and rules that Cream prescribes. Cream retains the right to demand exact compliance with every term, condition, and covenant in the agreement. Failure to comply with these standards can result in breaches of the agreement, potentially leading to termination.