Can Cream modify the amount of the Brand Fund Contribution?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. We have established a brand promotion fund (the "Brand Fund") to administer certain advertising, marketing, and public relations programs for the System, the Jeni's® brand, and the promotion of Jeni's Ice Creams Scoop Shops. You must contribute to the Brand Fund the amount that we prescribe (the "Brand Fund Contribution"). Currently, the Brand Fund Contribution is 2% of Net Sales. We may modify the amount of the Brand Fund Contribution with 30 days prior notice to you, in an amount up to 4% of Net Sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the ability to modify the amount franchisees must contribute to the Brand Fund. Currently, franchisees must contribute 2% of Net Sales to the Brand Fund. Cream can modify this amount with 30 days prior notice to franchisees.
Cream can increase the Brand Fund Contribution up to a maximum of 4% of Net Sales. This means that a franchisee's contribution could potentially double if Cream chooses to implement the maximum allowable increase.
This provision gives Cream considerable flexibility in adjusting the advertising and marketing budget. While this could benefit franchisees through increased brand awareness and customer traffic, it also represents a potential financial risk if franchisees feel the increased contribution does not yield a commensurate return. Prospective franchisees should consider this potential fluctuation when evaluating the overall cost of the franchise and discuss with Cream what factors might trigger an increase in the Brand Fund contribution.