What happens if a Cream franchisee's lease is terminated, regardless of fault?
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; | |
-
- 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.
-
- 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; (ii) Franchisor's succeeding to Tenant's interest in the Lease as a result of Franchisor's exercise of rights or remedies under such collateral assignment or as a result of Franchisor's termination of, or exercise of rights or remedies granted in or under, any other agreement between Franchisor and Tenant; and/or (iii) Tenant's, Franchisor's, and/or any other franchisee of Franchisor's assignment of the Lease to another franchisee of Franchisor with whom Franchisor has executed its then-standard Franchise agreement. Landlord agrees that to the extent Franchisor becomes Tenant, for howsoever brief a period, upon assumption of lease pursuant to this provision, that simultaneously with any subsequent assignment to another party, Franchisor will be released from all liability under the Lease or otherwise accruing after the date of such assignment; provided, that neither Tenant nor any other franchisee will be afforded such release in the event Tenant/such franchisee is the assignor, unless otherwise agreed by Landlord.
-
- Tenant's Signage. Landlord agrees to allow Tenant to use Franchisor's standard interior and exterior signage and designs to the maximum extent permitted by local governmental authorities. Tenant will be provided, at Tenant's sole cost and expense, with a panel on any pylon/monument/directory sign for the development in which the Premises is located and will be permitted to install a standard sign thereon approved by Franchisor, including, without limitation, Franchisor's logo. Landlord hereby grants and approves Tenant the right to display the Marks at the Premises, subject only to the provisions of applicable law.
-
- Notice and Cure Rights to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the landlord acknowledges the franchise relationship between the tenant (franchisee) and Jeni's Splendid Ice Creams Franchise, LLC (franchisor) for Cream. The landlord recognizes that the franchisee's rights to operate the Jeni's Ice Creams Scoop Shop and use the trademarks are based on the Franchise Agreement. The landlord agrees not to take actions that would prevent the franchisee from operating the Cream shop as outlined in the Franchise Agreement. This acknowledgement protects the franchisee's business operations from potential landlord interference, ensuring they can run the shop according to the franchise terms.
Furthermore, the landlord consents to the collateral assignment of the franchisee's lease interest to the franchisor. This allows the franchisor to secure the franchisee's obligations under the Franchise Agreement. The franchisor can also take over the lease if they exercise their rights or remedies, or if the Franchise Agreement is terminated. Additionally, the lease can be assigned to another Cream franchisee. This provision provides the franchisor with options to maintain the location's operation as a Cream franchise, even if the original franchisee's lease is terminated or assigned.
The landlord also agrees to provide the franchisor with written notice of any default by the franchisee, granting the franchisor an additional fifteen days beyond the franchisee's cure period to address the default. While the franchisor is not obligated to cure the default, this notice and cure right allows them the opportunity to intervene and protect their brand and the location. This can be crucial in preventing lease termination and ensuring the continued operation of the Cream franchise at that location. The FDD also states that the 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.