factual

What happens if a Cream franchisee loses possession or control of their Shop?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 23: RECEIPTS]

  • (3) cease to directly or indirectly identify yourself or your business as a current or 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;
  • (4) if we do not exercise our option to purchase your Shop under Section 15.D below, promptly and at your own expense, make the alterations we specify to distinguish your Shop clearly from its former appearance and from other Jeni's Ice Creams Scoop Shops, including by removing all materials and signage bearing our Marks and removing from both the interior and exterior of the Premises all materials and components of our trade dress as we determine to be necessary in order to prevent public confusion and in order to comply with the non-competition provisions set forth in Section 15.C;
  • (5) cease using and, at our direction, either disable or transfer, assign, or otherwise convey to us full control of all Contact Information and Digital Presences that you used to operate your Shop or that displays any of the Marks or any reference to the franchise system (provided that all liabilities and obligations arising from any such Contact Information or Digital Presence prior to the date of the transfer, assignment, or conveyance to us will remain your sole responsibility in all respects, and any costs we incur in connection therewith will be indemnifiable under Section 16.D);
  • (6) return to us or destroy (as we require) all items, forms, and materials containing any Mark or otherwise identifying or relating to Jeni's Ice Creams Scoop Shops, and any and all Confidential Information (including the Brand Manual and any and all customer data or other information from your Computer System);
  • (7) comply with all other System Standards we establish from time to time (and all applicable laws) in connection with the closure and de-identification of your Shop, including as it relates to disposing of Personal Information, in any form, in your possession or the possession of any of your employees; and
    • (8) give us evidence satisfactory to us of your compliance with these obligations.

[Item 23: RECEIPTS]

Franchisor Right to Enter.

Landlord acknowledges and agrees that Franchisor or its designee may enter the Premises for all purposes permitted under the terms of the Franchise Agreement, including to inspect the Premises and the Jeni's Ice Creams Scoop Shop's operations, to manage the Tenant's business on Tenant's behalf under certain circumstances (e.g., Tenant's failure to timely cure its default of the Franchise Agreement, and while Franchisor evaluates its right to purchase the location), or to remove any trade fixtures or signage upon termination or expiration of the Franchise Agreement.


[Item 23: RECEIPTS]

We may terminate this Agreement, effective upon delivery of written notice to you, if:

(2) you do not obtain lawful possession of a Premises we have approved and deliver to us a fully executed copy of the Lease and lease addendum we have approved for such Premises, in each case by the deadline set forth in Section 2.B;

(5) you abandon or fail to actively operate your Shop for more than 3 consecutive days of operation, or you provide us or any other party notice (written or oral) that you intend to permanently close or otherwise abandon the operation of your Shop;

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to the 2025 FDD, Cream outlines specific procedures a franchisee must follow if they lose possession or control of their shop. The franchisee must cease identifying as a current or former Cream franchisee, except when operating other Cream locations under a valid franchise agreement. This includes taking action to cancel or assign any assumed name registrations related to the use of Cream's marks.

Unless Cream exercises its option to purchase the shop, the franchisee is responsible for altering the shop to clearly distinguish it from its former appearance and other Cream locations. This involves removing all materials and signage bearing Cream's marks and trade dress to prevent public confusion and comply with non-competition agreements. The franchisee must also stop using and transfer control of all contact information and digital presences associated with the shop to Cream. The franchisee remains responsible for any liabilities arising from this contact information or digital presence before the transfer date and must indemnify Cream for any related costs.

The franchisee is obligated to return or destroy all items, forms, and materials containing Cream's marks or confidential information, including the Brand Manual and customer data. They must also comply with all system standards and applicable laws regarding the closure and de-identification of the shop, including the proper disposal of personal information. Finally, the franchisee must provide Cream with satisfactory evidence of their compliance with these obligations. Cream also has the right to enter the premises to manage the business on the Tenant's behalf under certain circumstances.

Cream may terminate the Franchise Agreement if the franchisee does not obtain lawful possession of an approved premises and deliver a fully executed copy of the lease and lease addendum by the specified deadline. Cream can also terminate the agreement if the franchisee abandons or fails to actively operate the shop for more than three consecutive days, or provides notice of intent to permanently close or abandon the shop.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.