What happens if Cream disapproves a proposed site for a Shop?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
business (Franchise Agreement – Section 2.C).
Site Selection
You are responsible for selecting a site for your Premises and obtaining our approval of that site. Neither we nor our affiliates generally own the sites for Jeni's Ice Creams Scoop Shops or lease any such sites to franchisees. If you have not located a site for the Premises when you sign the Franchise Agreement, we will identify a site selection area in your Franchise Agreement, and unless you have our prior written approval, you will not be permitted to search for a site outside of that site selection area. You must send us all of the information we require to evaluate each proposed site. You must obtain our approval of you site within 120 days after signing the Franchise Agreement. We will make all determinations about whether to approve a site based on our then-current criteria, including visibility, size, layout, adjacent uses, parking, demographics, local competition, and other factors. If we elect to visit any site in person, we will not charge a fee in connection with the first site evaluation visit; however, if we require or if you request any additional site evaluation visits (with respect to the same site or alternative sites), you must pay us $2,000 per site evaluation visit, plus reimburse the outof-pocket costs and expenses. Currently, we estimate that we will provide notice of our decision to approve or disapprove a proposed site within 30 days of receiving the request.
After the site of your Premises is approved by us, but before you execute any lease, sublease, or other document to secure occupancy rights (the "Lease") for the Premises, you must engage our approved or designated architect to develop detailed design and construction plans for your Shop that comply with any design specifications or prototypical plans provided by us and all applicable ordinances, building codes, permit requirements, and lease requirements and restrictions (your "Construction Plans"). You must obtain our approval of your Construction Plans before you sign the Lease. We must also approve your Lease before you sign it. You must obtain our approval of a site that will be your Premises and secure possession of the site under the terms of a Lease we have approved within 120 days of the date of signing your Franchise Agreement. If you fail to satisf
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are responsible for selecting a site for their premises and obtaining Cream's approval. Cream does not typically own or lease sites to franchisees. Upon signing the Franchise Agreement, Cream will identify a site selection area, and franchisees must seek approval before searching outside this area. Franchisees must provide all required information for Cream to evaluate the proposed site based on criteria like visibility, size, layout, adjacent uses, parking, demographics, and local competition. Cream estimates they will notify the franchisee of their decision to approve or disapprove a site within 30 days of receiving the request.
If Cream elects to visit a site in person, the first evaluation visit is free. However, subsequent visits, whether required by Cream or requested by the franchisee, incur a fee of $2,000 per visit, plus reimbursement for out-of-pocket costs and expenses. After Cream approves the site, but before the franchisee signs any lease, they must engage Cream's approved architect to develop detailed design and construction plans that comply with Cream's specifications, local ordinances, building codes, permit requirements, and lease restrictions. These Construction Plans must also be approved by Cream before the franchisee signs the lease.
Cream must also approve the lease itself before it is signed. The franchisee must obtain site approval and secure possession of the site under an approved lease within 120 days of signing the Franchise Agreement. Failure to meet these deadlines may result in the termination of the Franchise Agreement. This means that if Cream disapproves a proposed site, the franchisee must find an alternative site and go through the approval process again, all while adhering to the 120-day deadline, or risk losing the franchise.