What are the reasons Cream may disapprove a proposed development?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You must receive our approval of any site for a Jeni's Ice Creams Scoop Shop that you propose to develop in your Development Area before you enter into any lease or other agreement to secure the site. You 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.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the right to disapprove a proposed development for any reason. Specifically, Cream may disapprove a proposed Jeni's Ice Creams Scoop Shop development if the proposed site or the franchisee does not meet Cream's then-current criteria for new franchise development. Cream can also disapprove the proposed development if the franchisee or its affiliates are not in compliance with the Development Agreement or any Franchise Agreements with Cream.
This means that Cream retains significant control over where new locations are opened and can reject a site even if the franchisee finds it suitable. The 'then-current criteria' are subject to change, adding an element of uncertainty for the franchisee. Cream's criteria are established for their own purposes and are not intended to be relied on by the franchisee as an indicator of success.
Prospective Cream franchisees should carefully review the current criteria for new franchise development and maintain compliance with all agreements to minimize the risk of having a proposed development disapproved. It is important to have open communication with Cream regarding site selection and development plans to understand their expectations and address any potential concerns proactively. Franchisees should also conduct their own independent investigation before selecting any site for Cream's approval.