What is included in the definition of 'your Development Rights' in the Cream franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
l as other beverages, products, accessories, and merchandise authorized by us from time to time (each a "Jeni's Ice Creams Scoop Shop"). Jeni's Ice Creams Scoop Shops are developed and operated using certain specified and distinct business formats, methods, procedures, designs, layouts, standards, and specifications, all of which may be improved, further developed, or otherwise modified from time to time (the "System").
B. GRANT AND TERM OF DEVELOPMENT RIGHTS.
Subject to the terms of this Agreement, we hereby grant you the right to develop, own, and operate the number of Jeni's Ice Creams Scoop Shops specified in your Development Schedule (defined in Section 2.B) (your "Development Rights") strictly within the geographic area specified on Attachment A (your "Development Area"). You accept the grant of the Development Rights and agree to faithfully, honestly, and diligently perform your obligations under this Agreement and fully exploit the Development Rights during the Term (defined below) and throughout the entire Development Area.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream grants the franchisee the right to develop, own, and operate a specific number of Jeni's Ice Creams Scoop Shops within a defined geographic area, as outlined in the Development Schedule and Attachment A of the agreement. These rights are referred to as the franchisee's 'Development Rights.' The franchisee is expected to fulfill their obligations under the agreement and fully utilize these Development Rights throughout the term of the agreement and within the designated Development Area. The term of the agreement begins on the Effective Date and ends when the last required Jeni's Ice Creams Scoop Shop opens or on the last day of the final Development Period, whichever comes first.
The Development Rights are explicitly tied to the number of shops and the geographic area specified in the Development Schedule and Attachment A. This means a Cream franchisee's expansion is limited to the agreed-upon number of locations within their territory. Any desire to expand beyond this scope would require further negotiation and approval from Cream.
Cream retains all rights not expressly granted to the franchisee, including the right to operate or authorize others to operate Jeni's Ice Creams Scoop Shops outside the Development Area. Cream also reserves the right to conduct other business ventures, even those that might compete with Jeni's Ice Creams Scoop Shops, within or outside the Development Area, as long as they do not use the "Jeni's® " name and marks. This reservation of rights means that Cream could potentially introduce competing businesses or distribution channels within the franchisee's territory, provided they are branded differently.
The Cream franchisee must also adhere to a Development Schedule, as detailed in Attachment B, which outlines the timeline for opening Jeni's Ice Creams Scoop Shops. The franchisee acknowledges that they have independently assessed the feasibility of meeting these development obligations. Cream does not guarantee the Development Area can support the specified number of shops or that suitable sites will be available. This places the onus on the franchisee to conduct thorough market research and site selection before committing to the agreement.