If transferring a Cream Development Rights, what other agreements must be transferred concurrently?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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);
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their Development Rights, they must concurrently transfer all associated Franchise Agreements executed pursuant to the terms of the Development Rights agreement. This means a Cream franchisee cannot sell off the rights to develop new locations without also transferring the existing franchise agreements for scoop shops already in operation under that development agreement.
This requirement ensures that the new development rights holder takes on the full responsibility for both developing new Cream locations and managing the existing ones. It prevents a scenario where a franchisee could profit from selling development rights while leaving existing stores unmanaged or underperforming.
For a prospective Cream franchisee, this condition highlights the importance of carefully considering the long-term commitment involved in a development rights agreement. It also emphasizes the need to thoroughly evaluate the performance and potential of any existing scoop shops before agreeing to a transfer, as the franchisee will be responsible for those as well.