What pre-opening requirements must a Cream franchisee satisfy?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You must satisfy all of our System Standards for developing and opening your Shop and open your Shop for business by the earlier of: (i) 8 months after you sign the Lease, or (ii) the first anniversary of the Effective Date. We must approve the date that you open your Shop for business (the "Opening Date") and you will not open your Shop without our express approval.
C. DEVELOPMENT AND OPENING OF YOUR SHOP.
Once you receive our approval of your Lease, you must promptly apply for permits and other local licenses necessary to complete the construction outlined in your Construction Plans. We may require that you use suppliers we approve or designate to manage your permit and licensing applications. After signing your Lease and obtaining necessary permits, you must promptly begin to develop and outfit your Shop in accordance with the Construction Plans we have approved, at your cost, including that you must promptly obtain all required zoning changes, planning consents, building, utility, sign and business and other permits, consents and licenses necessary to lawfully open and operate your Shop. You may not modify the Construction Plans in any manner without our approval of such modifications. You must ensure that your Shop is designed and constructed in all respects in accordance with the Construction Plans we have approved. You must also, at your cost, to do all things necessary to develop and prepare your Shop for opening in accordance with this Agreement and our System Standards (defined in Section 4.E) including that you must:
- (1) obtain and install the operating assets we designate from time to time as meeting our System Standards for quality, design, appearance, function, and performance, including: (i) the computer hardware, software, and point-of-sale system (collectively, the "Computer System"), and (ii) all other fixtures, furniture, equipment, furnishings, and signage and other assets we specify as meeting our System Standards;
- (2) obtain all initial inventory and supplies we designate, in quantities sufficient to operate the Shop in accordance with our System Standards;
- (3) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating, and installation services;
- (4) obtain all certificates of insurance to demonstrate to us your compliance with our insurance requirements; and
- (5) satisfy all of your pre-opening requirements under this Agreement, including payment of fees and satisfaction of all training obligations.
We will count a Jeni's Ice Creams Scoop Shop toward the satisfaction of your Development Schedule only if you have satisfied all of the following conditions prior to the end of the applicable Development Period: (1) you have secured our approval of the proposed site of such Jeni's Ice Creams Scoop Shop; (2) you have executed our then-current form of Franchise Agreement for such Jeni's Ice Creams Scoop Shop by the timeline specified in the preceding paragraphs; (3) you have paid all associated fees for such Jeni's Ice Creams Scoop Shop arising under this Agreement and/or the Franchise Agreement; (4) you have executed a lease agreement or otherwise acquired occupancy rights to that premises on the terms described in your Franchise Agreement; and (5) you have secured our approval to open such Jeni's Ice Creams Scoop Shop, and such Jeni's Ice Creams Scoop Shop is open and operating in full compliance with its Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must meet several requirements before opening their shop. Cream requires franchisees to adhere to all System Standards for development and opening, ensuring the shop is ready for business within a specific timeframe. This timeframe is either eight months after signing the lease or by the first anniversary of the agreement's effective date, whichever comes first. Cream must also give express approval of the opening date.
To meet these standards, franchisees must obtain and install operating assets that meet Cream's standards for quality, design, appearance, function, and performance. This includes the designated computer hardware, software, point-of-sale system, fixtures, furniture, equipment, furnishings, and signage. Franchisees must also acquire the initial inventory and supplies in sufficient quantities to operate according to Cream's System Standards.
Additional pre-opening requirements include obtaining customary contractors' sworn statements and waivers of lien for construction services, securing certificates of insurance to demonstrate compliance with insurance requirements, and fulfilling all training obligations. Furthermore, if a franchisee is developing multiple Cream locations, Cream will only count a shop toward the Development Schedule if the site is approved, the Franchise Agreement is executed, all associated fees are paid, a lease agreement is in place, and Cream has approved the shop to open in full compliance with the Franchise Agreement.
Prospective franchisees should pay close attention to these requirements, as failure to meet them can result in delays or even termination of the franchise agreement. Meeting Cream's standards and timelines is crucial for a successful launch. Franchisees should maintain open communication with Cream throughout the development process to ensure all requirements are met and any potential issues are addressed promptly.