For a Cream franchise, is the franchisor required to reimburse the franchisee for costs associated with changes or modifications?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
for your Shop, including criteria for your insurance carriers; and
- (15) any other aspects of operating and maintaining your Shop that we determine to be useful to preserve or enhance the efficient operation, image or goodwill of the Marks and Jeni's Ice Creams Scoop Shops.
You understand that the System will continue to evolve during the Term and the System Standards may change periodically. These modifications may obligate you to invest additional capital in your Shop and/or incur higher operating costs. You agree to implement any changes to your Shop in accordance with our System Standards within the time period we request, including by purchasing any additional or modified equipment, inventory, or other products or supplies, using alternative suppliers, making changes to signage and advertising materials, offering additional or modified products or services, changing marketing or business strategies, and/or updating the Computer System. You will be solely responsible for the costs of implementing all changes to your Shop.
You acknowledge and agree that complete and detailed uniformity might not be possible or practical under varying conditions, and that we specifically reserve the right to vary System Standards
for any franchise owner based on the peculiarities of any condition that we consider important to that franchise owner's successful operation or preserving the goodwill of the System and Marks. We may choose not to authorize similar variations or accommodations to you or other franchise owners.
B. CONDITION OF YOUR SHOP.
You agree to maintain the condition and appearance of your Shop and the Premises, and all equipment, signage, furniture, fixtures, and other operating assets at the Shop or the Premises, to meet the highest standards of professionalism, cleanliness, sanitation, efficiency, courteous service, and pleasant ambiance. Without limiting the foregoing, you agree to take the following actions during the Term at your expense: (1) cleaning, repainting, and redecorating of the interior and exterior of the Premises; (2)
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the costs of implementing changes to their shop. Cream will likely evolve its standards during the franchise term, which may require franchisees to invest additional capital. These modifications may include purchasing new equipment or inventory, using alternative suppliers, updating signage, offering new products or services, changing marketing strategies, and updating the computer system.
Cream franchisees are expected to maintain their shop to meet the franchisor's standards for professionalism, cleanliness, and ambiance. This includes cleaning, repainting, redecorating, and repairing the premises, as well as repairing or replacing equipment and signage. Cream may also require franchisees to renovate, refurbish, remodel, or replace property and equipment at their own expense to comply with system standards.
This means that franchisees must be prepared to cover all expenses related to keeping their Cream shop up-to-date with the latest brand standards. This is a common practice in franchising, as it ensures consistency across all locations and helps maintain brand image. However, it's important for prospective franchisees to factor these potential costs into their financial planning.