Is the presentation of financial results for franchised outlets by Cream dependent on having franchised outlets in operation?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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. The information for the Item 19 Shops is divided into quartiles based on annual Net Profit (defined below) for the 2024 calendar year.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 51–57)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the presentation of financial results for franchised outlets is dependent on having franchised outlets in operation. As of December 31, 2024, Cream had no franchised outlets operating. Therefore, Cream was unable to present financial results for franchised outlets in Item 19. Instead, the financial performance representation in Item 19 is based on 83 corporate-owned Jeni's Ice Creams Scoop Shops operating for the entirety of the 2024 calendar year.
Cream divides the financial information for these corporate-owned shops into quartiles based on annual Net Profit for the 2024 calendar year. This data includes information on Net Sales, COGS (Cost of Goods Sold), Gross Profit, Direct Labor, Occupancy costs, Supplies, Credit Card Fees, Partnership Fees, Repairs and Maintenance, Other Costs, Total Operating Expenses, Imputed Royalty and Brand Fund Contributions, and Net Profit.
For a prospective Cream franchisee, this means that the financial performance data provided is based solely on corporate-owned stores. It is important to remember that the financial performance of corporate-owned stores may not be indicative of the potential performance of a franchised location. Factors such as location, management style, and local market conditions can significantly impact a franchise's financial results. Therefore, a potential franchisee should conduct their own independent research and due diligence to assess the potential financial viability of a Cream franchise in their desired location.
It is also important to note that Cream does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, other than what is presented in Item 19. If a prospective franchisee receives any other financial performance information or projections, they are advised to report it to Cream's management, the Federal Trade Commission, and the appropriate state regulatory agencies.