factual

If Cream modifies the System Standards for the Computer System, what is the Cream franchisee's obligation?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

You must obtain and install the computer hardware, software, and point-of-sale system that we approve for Jeni's Ice Creams Scoop Shops (collectively, the "Computer System"). We may modify System Standards for the Computer System from time to time, including the designated or approved suppliers for the Computer System, and you must update your Computer System to comply with the modified System Standards promptly after you receive notice. There are no contractual limitations on the frequency and cost of this obligation, and we are not required to reimburse you for these costs.

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, if Cream modifies the System Standards for the Computer System, franchisees must update their Computer System to comply with the modified System Standards promptly after receiving notice. This includes updates to designated or approved suppliers for the Computer System.

This obligation has no contractual limitations on frequency or cost, meaning Cream can make changes as often as they deem necessary, and franchisees are responsible for covering all associated expenses. Cream is not required to reimburse franchisees for these costs. The estimated cost of acquiring and installing the Computer System is between $2,000 and $4,000. The estimated ongoing cost of maintaining and upgrading the Computer System to meet the then-current System Standards is approximately $3,200 to $3,600 per year, including monthly subscription fees for required software and third-party subscriptions.

Cream also has unlimited, independent access to the franchisee's Computer System at all times, except for software used to maintain payroll and other human resource files. Franchisees must ensure that Cream and its designees have the right to collect and retain any and all data concerning their Shop from the Computer System. This level of access and the franchisee's responsibility for updates and costs are important considerations for potential franchisees.

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.