What is the length of the franchise term granted to a Cream franchisee, starting from the Effective Date?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms of this Agreement, we hereby grant you a franchise to develop, own, and operate a Jeni's Ice Creams Scoop Shop (your "Shop") on the terms described in this Agreement for a term that will begin on the Effective Date and will expire 10 years from your Effective Date unless sooner terminated under Section 14 (the "Term"). You agree to faithfully, honestly, and diligently perform your obligations under this Agreement and to use your best efforts to promote and operate your Shop from and after the Opening Date on a continuous basis for the entirety of the Term.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the franchise term begins on the Effective Date and extends for 10 years. This term can be terminated earlier under specific conditions outlined in Section 14 of the franchise agreement. During this term, the franchisee is expected to diligently operate and promote their Cream shop.
At the end of the initial 10-year term, Cream offers franchisees the opportunity to renew their franchise agreement. Franchisees can renew for two successive terms of 5 years each, provided they meet certain conditions.
These conditions include giving Cream written notice within a specified timeframe, compliance with the agreement terms, maintaining an approved lease for the premises, agreeing to remodel the shop to meet current standards, paying a renewal fee equal to 50% of the then-current initial franchise fee, and signing the current franchise agreement, which may have different terms than the original agreement.