If the transfer is of the Cream Agreement or Development Rights, what must the transferee sign?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
nd your transferring owners agree to satisfy all post-termination obligations under this Agreement;
- (5) if the transfer is of this Agreement or your Development Rights, you have satisfied all of the conditions to transfer all Franchise Agreements that you have executed in connection with this Agreement (and you understand that you may not transfer this Agreement or your Development Rights, without concurrently transferring all associated Franchise Agreements executed pursuant to the terms hereof, and the operations of any associated Jeni's Ice Creams Scoop Shops);
- (6) the transferee must (if the transfer is of this Agreement or your Development Rights) sign our then-current form of area development agreement and related documents, any and all of the provisions of which may differ materially from any and all of those contained in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, if a Cream franchisee transfers their Cream Agreement or Development Rights, the transferee must sign Cream's then-current form of area development agreement and related documents. The provisions within these documents may differ significantly from those in the original agreement. However, the term of the new area development agreement will match the remaining term and development schedule of the original agreement.
In addition to the area development agreement, the transferring franchisee must ensure that all Franchise Agreements associated with the Development Rights are also transferred concurrently. This means a franchisee cannot transfer the Development Rights without also transferring all associated Jeni's Ice Creams Scoop Shops operations.
Prospective franchisees should carefully review the then-current form of area development agreement to understand any potential changes in obligations, fees, or operational requirements compared to the original agreement. It is important to note that Cream retains the right to modify these terms, and the transferee will be bound by the new agreement.