What is the potential for Cream to provide supplemental financial performance information to prospective franchisees?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
igure to promote the franchise system.
ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about performance at a particular location or under particular circumstances.
As of December 31, 2024, there were a total of 87 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States. Of the 87 corporate-owned Jeni's Ice Creams Scoop Shops, 2 opened during 2024 and were not operating for the entirety of 2024, and 2 operated on a limited seasonal basis and therefore were not operating for the entirety of 2024. The data presented in this Item 19 is based
on the remaining 83 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States for the entirety of the 2024 calendar year (the "Item 19 Shops"). We had no franchised outlets operating as of the end of our most recent fiscal year and are therefore not able to present results for franchised outlets.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream is permitted to supplement the financial performance information provided in Item 19. This means that Cream can offer additional details about potential financial performance, such as information specific to a particular location or under certain circumstances.
However, the FDD also states that financial performance information differing from that included in Item 19 may be given only if Cream provides the actual records of an existing outlet a prospective franchisee is considering buying. If a prospective franchisee receives any other financial performance information or projections about future income, they should report it to Cream's management by contacting Sean Bock at 401 North Front Street, Suite 300, Columbus, Ohio 43215, (602) 505-4325, the Federal Trade Commission, and the appropriate state regulatory agencies.
This additional information could be beneficial for prospective franchisees as it may provide a more tailored and realistic expectation of potential financial outcomes based on specific factors. However, prospective franchisees should be cautious about any financial performance representations not included in Item 19 or the records of an existing outlet, and should report any unauthorized representations to the appropriate parties.