Does Cream have the option to purchase the Shop's Premises if the franchisee or its affiliates own it?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) if we do not exercise our option to purchase your Shop under Section 15.D below, promptly and at your own expense, make the alterations we specify to distinguish your Shop clearly from its former appearance and from other Jeni's Ice Creams Scoop Shops, including by removing all materials and signage bearing our Marks and removing from both the interior and exterior of the Premises all materials and components of our trade dress as we determine to be necessary in order to prevent public confusion and in order to comply with the non-competition provisions set forth in Section 15.C;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee's agreement with Cream ends, Cream has the option to purchase the Shop. If Cream does not exercise this option, the franchisee must promptly alter the shop at their own expense to distinguish it from other Cream locations. This includes removing Cream's branding and trade dress to prevent public confusion and comply with non-competition rules.
In the event that Cream does not exercise its option to purchase the shop, the franchisee is obligated to remove all Cream trademarks and trade dress from both the interior and exterior of the premises. This involves removing signage, materials, and components that identify the location as a Cream shop. The purpose is to clearly differentiate the location from its former appearance and prevent any confusion among customers.
Additionally, the franchisee must cease using and transfer control of all contact information and digital presences associated with the shop to Cream. This includes websites, social media accounts, and any other online platforms used to operate the Cream location. The franchisee remains responsible for any liabilities or obligations arising from these digital presences prior to the transfer date, and any costs incurred by Cream in connection with the transfer are indemnifiable under the agreement.
Overall, this clause ensures that upon termination or expiration of the franchise agreement, Cream has the option to take over the physical location. If Cream declines, the franchisee must take immediate steps to rebrand the location and remove any association with the Cream brand, ensuring a clean break and preventing any potential confusion or competition.