If a Cream franchisee does not have an approved lease, do they have a Protected Territory?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to your continued compliance with this Agreement, and the reserved rights described below, during the Term, neither we nor any of our affiliates will establish, operate, or authorize any other person to establish or operate a Jeni's Ice Creams Scoop Shop in the area described in Attachment C (the "Protected Territory"). If you have not selected a site for your Shop as of the Effective Date, we will identify the Protected Territory once you sign your approved Lease, as described in Section 2.B below. Until such time as we execute Attachment C to identify an approved Premises and Protected Territory for your Shop, you do not have a Protected Territory and/or any other territorial protection of any kind, including in the Site Selection Area and/or any other area surrounding your Premises.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee will not have a protected territory until they sign an approved lease. The document specifies that if a site has not been selected for the shop by the effective date of the agreement, the protected territory will be identified once the approved lease is signed.
Until Cream executes Attachment C, which identifies an approved premise and protected territory, the franchisee will not have any territorial protection. This includes the site selection area or any other area surrounding the premises. This means that until the lease is approved and the protected territory is defined, Cream retains the right to establish or authorize other Jeni's Ice Creams Scoop Shops in the area.
This lack of territorial protection before lease approval is a significant consideration for prospective franchisees. It means that Cream could potentially open another location nearby, impacting the franchisee's potential customer base and revenue before they even begin operations. Franchisees should prioritize securing an approved lease to gain the protected territory as soon as possible.