What must the Cream franchisee do before Cream identifies the Protected Territory?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to your continued compliance with this Agreement, and the reserved rights described below, during the Term, neither we nor any of our affiliates will establish, operate, or authorize any other person to establish or operate a Jeni's Ice Creams Scoop Shop in the area described in Attachment C (the "Protected Territory"). If you have not selected a site for your Shop as of the Effective Date, we will identify the Protected Territory once you sign your approved Lease, as described in Section 2.B below. Until such time as we execute Attachment C to identify an approved Premises and Protected Territory for your Shop, you do not have a Protected Territory and/or any other territorial protection of any kind, including in the Site Selection Area and/or any other area surrounding your Premises.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee has not selected a site for their shop by the effective date of the agreement, Cream will identify the protected territory once the franchisee signs their approved lease, as detailed in Section 2.B of the agreement. Until Cream executes Attachment C to identify an approved premises and protected territory, the franchisee does not have a protected territory or any other territorial protection.
This means that securing an approved lease is a critical step for Cream franchisees to gain territorial protection. Without a signed lease and the subsequent execution of Attachment C, the franchisee operates without any exclusive rights to a specific area. This lack of protection could expose the franchisee to competition from other Cream locations or channels.
Prospective Cream franchisees should prioritize site selection and lease negotiation to expedite the process of securing their protected territory. Understanding the site selection criteria and working closely with Cream to get a lease approved is essential. Franchisees should also be aware of the implications of operating without a protected territory and factor that risk into their business planning until the protected territory is officially defined.