What pre-opening requirements must a Cream franchisee satisfy under the Franchise Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
u agree to give us all information and materials we request to assess each Jeni's Ice Creams Scoop Shop that you propose to develop, as well as your financial and operational ability to develop and operate the proposed Jeni's Ice Creams Scoop Shop. We have the absolute right to disapprove any proposed development for any reason, including if: (1) it or you do not meet our then-current criteria for new franchise development, or (2) if you or your affiliates are not then in compliance with this Agreement or any Franchise Agreements with us.
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.
D. DEVELOPMENT DEFAULTS.
If you fail to comply with the Development Schedule, we reserve the right to terminate or reduce the size of your Development Area, and/or terminate the territorial protections that you have in some or all of your Development Area under Section 1.D, after which time we and our affiliates may establish or operate or authorize any other person to establish or operate a Jeni's Ice Creams Scoop
Shop in your current or former Development Area in our discretion.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, a Cream franchisee must meet several conditions before they can open their ice cream shop. Cream must approve the proposed site for the Scoop Shop. The franchisee must sign Cream's current Franchise Agreement form. All associated fees arising under the agreement and/or the Franchise Agreement must be paid. The franchisee needs to execute a lease agreement or acquire occupancy rights to the premises as described in the Franchise Agreement. Finally, Cream must grant approval to open the Scoop Shop, and the shop must be operating in full compliance with the Franchise Agreement.
Cream requires the franchisee to satisfy all System Standards for developing and opening their shop. The shop must be open for business within a specific timeframe: either 8 months after signing the lease or by the first anniversary of the Effective Date, whichever comes first. The franchisee must obtain Cream's express approval for the Opening Date before commencing operations.
Failure to meet these pre-opening requirements can lead to significant repercussions. If a Cream franchisee does not comply with the Development Schedule, Cream reserves the right to terminate or reduce the size of the Development Area and/or terminate territorial protections. This would allow Cream or its affiliates to establish or operate another Cream Scoop Shop in the franchisee's current or former Development Area. These stipulations highlight the importance of adhering to Cream's requirements and timelines to maintain the franchise agreement and territorial rights.