factual

What is a Cream franchisee advised to obtain before signing a Lease or other legal documents?

Cream Franchise · 2025 FDD

Answer 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.

We will count a Jeni's Ice Creams Scoop Shop toward the satisfaction of your Development Schedule only if you have satisfied all of the following conditions prior to the end of the applicable Development Period: (1) you have secured our approval of the proposed site of such Jeni's Ice Creams Scoop Shop; (2) you have executed our then-current form of Franchise Agreement for such Jeni's Ice Creams Scoop Shop by the timeline specified in the preceding paragraphs; (3) you have paid all associated fees for such Jeni's Ice Creams Scoop Shop arising under this Agreement and/or the Franchise Agreement; (4) you have executed a lease agreement or otherwise acquired occupancy rights to that premises on the terms described in your Franchise Agreement; and (5) you have secured our approval to open such Jeni's Ice Creams Scoop Shop, and such Jeni's Ice Creams Scoop Shop is open and operating in full compliance with its Franchise Agreement.

D. DEVELOPMENT DEFAULTS.

If you fail to comply with the Development Schedule, we reserve the right to terminate or reduce the size of your Development Area, and/or terminate the territorial protections that you have in some or all of your Development Area under Section 1.D, after which time we and our affiliates may establish or operate or authorize any other person to establish or operate a Jeni's Ice Creams Scoop

Shop in your current or former Development Area in our discretion. Notwithstanding the foregoing, nothing contained in this Section shall be deemed a waiver of our right to terminate this Agreement for failure to comply with the Development Schedule.

E. BUSINESS PLAN AND REPORTING.

Within 60 days after the Effective Date, you must prepare and give us a business plan including a projected schedule for Jeni's Ice Creams Scoop Shop development and detailed cost and revenue projections for your activities under this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, a prospective franchisee must receive Cream's approval of any site for a Jeni's Ice Creams Scoop Shop before entering into any lease or other agreement to secure the site. Additionally, the franchisee must obtain Cream's approval of the Construction Plans before signing the Lease. Cream also needs to approve the Lease before the franchisee signs it.

Cream may condition its approval of the Lease on the lessor's agreement to certain provisions that Cream requires to protect its interests. These requirements are reflected in Cream's form of lease rider, which is attached as Attachment E in the FDD. It is the franchisee's responsibility to obtain a fully executed lease rider approved by Cream, without modification, and executed by both the franchisee and the landlord.

The franchisee acknowledges that they have the sole responsibility to develop their Construction Plans and negotiate and execute the Lease. Any review or approval by Cream of the Construction Plans or Lease is for Cream's sole benefit and indicates only that such Construction Plans and Lease satisfy Cream's minimum requirements. The franchisee agrees that they are not relying on Cream's review and approval of the Construction Plans or Lease for their benefit and that they have been advised to obtain the advice of their own professional advisors before signing a Lease or any other legal documents.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.