With whom will a Cream franchisee have a contractual relationship according to the agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
---|---| | former Jeni’s Ice Creams Scoop Shop or as one of our current or former franchise owners | | | (except in connection with other Jeni’s Ice Creams Scoop Shops you operate in compliance | | | with the terms of a valid | Franchise Agreement with us) and take the action required to cancel | | or assign all fictitious or assumed name or equivalent registrations relating to your use of any | | | Mark; | |
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- Acknowledgement of Franchise Relationship. Landlord acknowledges that Tenant intends to operate a Jeni's® Shop (a "Jeni's Ice Creams Scoop Shop") at the Premises, and that Tenant's rights to operate the Jeni's Ice Creams Scoop Shop and to use the Jeni's*®* name, trademarks, and service marks (the "Marks") are solely pursuant to a franchise agreement ("Franchise Agreement") between Tenant and Jeni's Splendid Ice Creams Franchise, LLC ("Franchisor"). Tenant's operations at the Premises are independently owned and operated. Landlord acknowledges that Tenant alone is responsible for all obligations under the Lease unless and until Franchisor or another franchisee expressly, and in writing, assumes such obligations and takes actual possession of the Premises. Landlord agrees not to take an action that would prohibit Tenant from operating the Jeni's Ice Creams Scoop Shop, as contemplated by the Franchise Agreement, at the Premises.
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- Consent to Collateral Assignment to Franchisor. Landlord hereby consents, without payment of a fee and without the need for further Landlord consent, to (i) the collateral assignment of Tenant's interest in this Lease to Franchisor to secure Tenant's obligations to Franchisor under the Franchise Agreement;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, a Cream franchisee will primarily have a contractual relationship with Jeni's Splendid Ice Creams Franchise, LLC, which is identified as the Franchisor. This relationship is formalized through the Franchise Agreement, which grants the franchisee the rights to operate a Jeni's Ice Creams Scoop Shop and use the associated trademarks and service marks. The agreement outlines the obligations and responsibilities of both the franchisee and Cream.
Additionally, the landlord of the premises where the Cream shop operates acknowledges the franchise relationship between the tenant (franchisee) and Cream. The landlord consents to the collateral assignment of the tenant's lease interest to Cream, securing the franchisee's obligations under the Franchise Agreement. This consent extends to Cream's potential succession to the lease if it exercises its rights or remedies, or if the lease is assigned to another Cream franchisee.
Furthermore, the FDD states that Cream has granted the franchisee rights in the agreement based on the franchisee's agreement to deal exclusively with them. During the term of the agreement, the franchisee is restricted from having any direct or indirect interest in a Competitive Business, defined as any business where ice cream or similar products represent more than 10% of the total gross revenue, excluding other Cream franchises. This highlights the importance of the contractual relationship and the commitment to exclusivity within the Cream franchise system.