What information about business activities must a Cream franchisee report to Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 60 days after the Effective Date, you must prepare and give us a business plan including a projected schedule for Jeni's Ice Creams Scoop Shop development and detailed cost and revenue projections for your activities under this Agreement. At least 90 days before the start of each calendar year during the Term, you must update the business plan to cover both actual results for the previous year and projections for the then-current year. You acknowledge and agree that, while we may review and provide comments on the business plan and any updates you submit to us, regardless of whether we approve, disapprove, require revisions, or provide other comments with respect to the business plan or any updated business plan, we take no responsibility for and make no guarantees or representations, expressed or implied, with respect to your ability to meet the business plan or to achieve the results set forth therein. You bear the entire responsibility for achievement of the business plan you develop.
You must send us a report of your business activities, including information about your efforts to find sites for Jeni's Ice Creams Scoop Shops in the Development Area and the status of development and projecting openings for each Jeni's Ice Creams Scoop Shop under development in the Development Area as follows: (a) until your first Jeni's Ice Creams Scoop Shop is open for business, on a monthly basis within 7 days of the end of each calendar month; and (b) after your first Jeni's Ice Cream Scoop Shop is open for business, on a quarterly basis within 15 days of the end of each calendar quarter. We may at any time during the Term also request further information about your development plans, and you agree to provide us such information upon request.
You agree to establish and maintain at your own expense a bookkeeping, accounting, and recordkeeping system conforming to the requirements and formats we prescribe from time to time. You further agree to deliver to us such additional financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, tax records, and such other records we request, at the intervals and in the format we specify from time to time.
You agree to verify and sign each report and financial statement in the manner we prescribe. We may disclose data derived from these reports. You agree to preserve and maintain all records in a secure location at your business for at least three years, or such longer period as may be required by applicable law (including sales checks, purchase orders, invoices, payroll records, customer lists, check stubs, sales tax records and returns, cash receipts and disbursement journals, and general ledgers).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must submit a business plan to Cream within 60 days of the agreement's effective date. This plan should include a projected schedule for Cream Scoop Shop development, along with detailed cost and revenue projections. Annually, at least 90 days before each calendar year's start, franchisees must update this business plan to reflect the previous year's actual results and projections for the current year. Cream may review and comment on the business plan, but the franchisee bears the entire responsibility for achieving the plan's objectives.
Cream franchisees must also provide regular reports on their business activities. Until the first Cream Scoop Shop opens, these reports are required monthly, within 7 days of each calendar month's end. After the first shop opens, the reporting frequency changes to quarterly, due within 15 days of each calendar quarter's end. These reports should include information on site selection efforts for Cream Scoop Shops within the Development Area, the status of development, and projected openings for each shop under development.
Cream retains the right to request additional information about a franchisee's development plans at any time during the term of the agreement, and franchisees are obligated to provide this information upon request. Franchisees must also maintain a bookkeeping, accounting, and recordkeeping system that conforms to Cream's requirements. They must deliver additional financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, and tax records, at specified intervals and formats. These reports and financial statements must be verified and signed as prescribed by Cream, and all records must be preserved for at least three years.