If transferring the Cream Area Development Agreement or Development Rights, what agreement 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 Cream's 2025 Franchise Disclosure Document, if a franchisee transfers the Area Development Agreement or Development Rights, the transferee must sign Cream's then-current form of area development agreement and related documents. The provisions within this new agreement 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.
This requirement ensures that Cream maintains control over who is developing their franchise locations and that the new developer agrees to the current terms and conditions of the franchise. It also allows Cream to update the agreement to reflect any changes in their business model or legal requirements.
Prospective franchisees should be aware that the terms of the area development agreement can change over time, and a transferee will be subject to the most current version. This could impact the transferee's rights and obligations, so it's important to carefully review the new agreement before proceeding with the transfer. Additionally, the original franchisee must transfer all associated Franchise Agreements, meaning the operation of any associated Jeni's Ice Creams Scoop Shops, concurrently with the Area Development Agreement or Development Rights.