If Cream adopts an advertising policy, what are franchisees required to do regarding advertising prices?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless prohibited by applicable law, we may periodically set a maximum or minimum price that you may charge for products and services offered by Jeni's Ice Creams Scoop Shops. If we impose
such a maximum or minimum price for any product or service, you may charge any price for the product or service up to and including our designated maximum price or down to and including our designated minimum price. The designated maximum and minimum prices for the same product or service may, at our option, be the same. For any product or service for which we do not impose a maximum or minimum price, we may require you to comply with an advertising policy adopted by us which will prohibit you from advertising any price for a product or service that is different than our suggested retail price. Although you must comply with any advertising policy we adopt, you will not be prohibited from selling any product or service at a price above or below the suggested retail price unless we impose a maximum price or minimum price for such product or service.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream may periodically set maximum or minimum prices for products and services, unless prohibited by law. If Cream does not set a maximum or minimum price, they may require franchisees to comply with an advertising policy. This policy could prohibit franchisees from advertising prices different from Cream's suggested retail price.
Even with an advertising policy in place, Cream franchisees are not prohibited from selling products or services at prices above or below the suggested retail price, unless Cream has set a specific maximum or minimum price. This means that while franchisees must adhere to the advertising policy, they retain some flexibility in setting their actual prices.
This policy allows Cream to maintain a consistent brand image and price perception across all franchise locations through its advertising policy. However, the franchisee still has the ability to adjust prices to respond to local market conditions, as long as they do not advertise prices that deviate from Cream's suggestions when no maximum or minimum price is set.