What must Cream and the franchisee agree on before signing the Area Development Agreement?

According to Cream's 2025 Franchise Disclosure Document, before a prospective franchisee signs an Area Development Agreement, Cream and the franchisee must agree on both the Development Area and the Development Schedule. The Development Area refers to the specific geographic territory where the franchisee will develop Cream shops. The Development Schedule outlines the timeline for opening these shops within the agreed-upon area. Cream currently only offers Area Development Agreements for a Development Schedule of three to five Jeni's Ice Creams Scoop Shops.

This agreement is significant because it sets the scope and pace of the franchisee's expansion. Agreeing on the Development Area ensures that both Cream and the franchisee have a shared understanding of the market and territory involved. The Development Schedule is crucial for planning and resource allocation, as it dictates when and how quickly the franchisee must open new locations.

Prospective Cream franchisees should carefully consider their capacity to meet the Development Schedule and thoroughly research the potential of the Development Area. It is important to negotiate terms that are realistic and achievable, given the franchisee's financial resources, operational capabilities, and market knowledge. The Area Development Agreement does not grant the right to develop or open a Jeni's Ice Creams Scoop Shop at any specific location within the Development Area. To develop a Jeni's Ice Creams Scoop Shop within the Development Area, the franchisee must sign Cream's then-current form of Franchise Agreement to develop and operate that Jeni's Ice Creams Scoop Shop.

Furthermore, the franchisee must sign a Franchise Agreement for their first Jeni's Ice Creams Scoop Shop at the same time they execute the Area Development Agreement. For each subsequent Jeni's Ice Creams Scoop Shop, the franchisee will sign Cream's then-current form of Franchise Agreement to develop and operate that Jeni's Ice Creams Scoop Shop when Cream approves the site for that Shop.