For a Cream franchise, does the franchisor's review or approval of Construction Plans or the Lease benefit the franchisee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
. 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.
You must receive our approval of any site for a Jeni's Ice Creams Scoop Shop that you propose to develop in your Development Area before you enter into any lease or other agreement to secure the site. You agree to give us all information and materials we request to assess each Jeni's Ice Creams Scoop Shop that you propose to develop, as well as your financial and operational ability to develop and operate the proposed Jeni's Ice Creams Scoop Shop. We have the absolute right to disapprove any proposed development for any reason, including if: (1) it or you do not meet our then-current criteria for new franchise development, or (2) if you or your affiliates are not then in compliance with this Agreement or any Franchise Agreements with us.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream Franchise Disclosure Document, Cream requires approval of the site for a Jeni's Ice Creams Scoop Shop before the franchisee enters into any lease or agreement to secure the site. The franchisee must provide all requested information and materials to allow Cream to assess the proposed shop. Cream has the absolute right to disapprove any proposed development for any reason, including if the site or the franchisee does not meet Cream's criteria for new franchise development, or if the franchisee or its affiliates are not in compliance with the Development Agreement or any Franchise Agreements with Cream. Cream will only count a Jeni's Ice Creams Scoop Shop toward the satisfaction of the Development Schedule if the franchisee has secured Cream's approval of the proposed site.
Cream also has the right to make determinations about whether to approve or disapprove a site based on their then-current criteria, which may change periodically. Cream is not obligated to visit any site proposed for the Shop in person, though they may elect to do so. Cream will not charge a fee in connection with the first site evaluation visit they elect to conduct; however, if Cream requires, or if the franchisee requests, any additional site evaluation visits (with respect to the same site or alternative sites), the franchisee must pay Cream $2,000 per site evaluation visit, plus reimburse the out-of-pocket costs and expenses.
Cream's approval of the site and the lease can benefit the franchisee by ensuring that the location meets Cream's standards for a successful Jeni's Ice Creams Scoop Shop. This can reduce the risk of selecting a poor location that could lead to financial losses. However, the franchisee should carefully consider Cream's criteria for site selection and conduct their own due diligence to ensure that the location is suitable for their business. The franchisee bears the risk that Cream may disapprove a site for any reason.