What is the 'reasonable basis' requirement for Cream to provide financial performance information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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 FTC's Franchise Rule allows Cream to provide information about the actual or potential financial performance of its franchised and/or company-owned outlets if there is a reasonable basis for the information. This information must be included in the disclosure document.
Cream can only provide financial performance information that differs from what is included in Item 19 if Cream provides the actual records of an existing outlet the franchisee is considering buying, or if Cream supplements the information provided in Item 19 by providing information about performance at a particular location or under particular circumstances.
As of December 31, 2024, Cream had 87 corporate-owned Jeni's Ice Creams Scoop Shops operating in the United States. The financial performance data presented in Item 19 is based on 83 of these shops that operated for the entirety of the 2024 calendar year. Cream had no franchised outlets operating as of the end of its most recent fiscal year and is 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 for the 2024 calendar year.