What must potential Cream franchisees confirm to be granted a franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
A. YOUR RIGHT TO RENEW YOUR FRANCHISE.
When this Agreement expires, you may renew your franchise to operate your Shop for two successive terms of 5 years each, if you meet the following conditions:
- (1) you give us written notice of your election to acquire a successor franchise no more than 270 days and no less than 180 days before this Agreement expires;
- (2) you and each of your owners have substantially complied with this Agreement at all times during the Term;
- (3) you maintain possession of the Premises pursuant to a Lease we have approved, which must have a Lease term no less than the full term of the renewal franchise;
- (4) you agree to remodel and/or expand your Shop, add or replace improvements, and otherwise modify your Shop as we require to comply with System Standards thenapplicable for new Jeni's Ice Creams Scoop Shops;
- (5) you pay us our renewal fee, which is 50% of the then-current initial franchise fee;
- (6) you and your owners have not violated any provision of this Agreement or any other agreement with us or our affiliates during both the 60-day period before you give us written notice of your election to acquire a successor franchise and on the date on which the term of the successor franchise commences, in full compliance with this Agreement including that you have paid all Royalties, Brand Fund Contributions, and other amounts owed to us, our affiliates, and third-party suppliers, and have submitted all required reports and statements;
- (7) you and your owners sign the franchise agreement and all other ancillary documents and guaranties we then use to grant franchises for Jeni's Ice Creams Scoop Shops (modified as necessary to reflect the fact that it is for a renewal franchise), which may contain provisions that differ materially from those contained in this Agreement, including changes to your Royalty, Brand Fund Contribution, and Protected Territory;
- (8) you and your owners agree to sign, in a form satisfactory to us, a general release of any and all claims (except for claims which cannot be released or waived pursuant to an applicable franchise statute) against us and our owners, affiliates, officers, directors, employees, agents, successors, and assigns; and
(9) we are then-offering franchises for Jeni's Ice Creams Scoop Shops in your geographic market.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream Franchise Disclosure Document, to be granted a renewal franchise, a franchisee must meet several conditions. The franchisee must provide written notice of their intent to acquire a successor franchise between 180 and 270 days before the current agreement expires. Both the franchisee and their owners must have substantially complied with the existing agreement throughout its term. They need to maintain possession of the premises under a lease approved by Cream, with a term at least as long as the renewal franchise term.
Additionally, franchisees must agree to remodel or expand their shop to meet the system standards for new Cream locations. They are also required to pay a renewal fee, which is 50% of the then-current initial franchise fee. Franchisees and their owners must not have violated any agreements with Cream or its affiliates in the 60 days before giving notice of renewal, and they must be fully compliant with the agreement at the start of the successor franchise term, including paying all royalties, brand fund contributions, and submitting all required reports.
Furthermore, franchisees and their owners must sign Cream's current franchise agreement and any related documents, which may differ significantly from the original agreement, including changes to royalty fees, brand fund contributions, and protected territories. They must also sign a general release of claims against Cream and its affiliates. Finally, Cream must be offering franchises for Jeni's Ice Creams Scoop Shops in the franchisee's geographic market at the time of renewal.
These conditions ensure that Cream franchisees maintain brand standards, remain financially compliant, and resolve any potential legal issues before continuing their franchise agreement. This is a fairly standard renewal process in franchising, designed to protect the brand and ensure continued success for both the franchisor and franchisee.