Is a Cream franchisee allowed to rely on the franchisor's site approval for their benefit?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
If we recommend, approve, or give you information regarding a site for the Premises, that is not a representation or warranty of any kind, express or implied, of its suitability for a Jeni's Ice Creams Scoop Shop or any other purpose. Our recommendation and/or approval of any site indicates only that the site meets our then-current minimum criteria which have been established for our own purposes and are not intended to be relied on by you as an indicator of success. You agree that you are not relying on our site approval for your benefit. You further acknowledge that you have been advised to conduct your own independent investigation before selecting any site for our approval. We are not responsible if the site you select for your Shop, including a site we recommend or approve, fails to meet your expectations.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, a Cream franchisee is explicitly prohibited from relying on Cream's site approval for their own benefit. Cream states that its site approval is not a representation or warranty of any kind regarding the site's suitability for a Cream shop or any other purpose. Cream's approval only indicates that the site meets their minimum criteria, which are established for their own purposes and should not be seen as an indicator of the site's potential success for the franchisee.
Cream advises franchisees to conduct their own independent investigation before selecting a site for approval. This suggests that franchisees should not solely depend on Cream's assessment but should also consider their own market research, financial projections, and other relevant factors. Cream explicitly states that they are not responsible if the selected site, even one they recommended or approved, fails to meet the franchisee's expectations.
This disclaimer is a common practice in franchising, as the franchisor's expertise in site selection may not guarantee success due to varying local market conditions and individual franchisee capabilities. Prospective Cream franchisees should take this warning seriously and perform thorough due diligence on any potential location, including consulting with real estate professionals and conducting their own market analysis, before committing to a lease.