Is a Cream franchisee solely responsible for determining the actions needed to comply with applicable laws?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
on. In addition, nothing in this Agreement shall prohibit you from reporting a suspected violation of law to the appropriate governmental agency or authority.
8. OPERATION OF YOUR SHOP.
A. SYSTEM STANDARDS.
You agree at all times to operate and maintain your Shop according to each and every System Standard, as we periodically modify and supplement them. Though we retain the right to establish and periodically modify System Standards, you retain the sole responsibility for the day-to-day management and operation of your Shop and the implementation and maintenance of System Standards at your Shop. System Standards may regulate any aspect of the operation and maintenance of your Shop, including any one or more of the following:
- (1) amounts and types of fixtures, furniture, equipment, components of the Computer System, furnishings, signs, and other operating assets, inventory, products, materials, and services used by a Jeni's Ice Creams Scoop Shop;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees are responsible for adhering to applicable laws while operating their shop. While Cream establishes System Standards that franchisees must follow, the franchisee is ultimately responsible for the day-to-day management and operation of their Cream shop, including the implementation and maintenance of these System Standards. This means that the franchisee must ensure their shop's operations comply with all relevant laws and regulations.
Cream's FDD emphasizes the franchisee's role in managing their shop's operations. The franchisee is expected to supervise the shop's management and continuously work to improve its performance. If the franchisee, or its Principal Owner, does not manage the shop daily, they must get Cream's approval for a Shopkeeper to supervise the shop. This Shopkeeper must also complete the Initial Training Program.
Furthermore, upon termination or expiration of the franchise agreement, the franchisee must comply with all applicable laws related to the closure and de-identification of their shop. This includes properly disposing of personal information. The franchisee must also provide Cream with evidence of their compliance with these obligations. Therefore, while Cream provides System Standards, the franchisee bears the responsibility for ensuring their shop adheres to all applicable laws during operation and after termination of the franchise agreement.