What representation is Cream relying on from the franchisee regarding the Development Schedule?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
A. DEVELOPMENT FEE.
On the Effective Date, you must pay us an area development fee (the "Development Fee") specified on Attachment B of this Agreement. The Development Fee is fully earned by us when you sign this Agreement. The Development Fee will be in lieu of the initial franchise fee due for the Jeni's Ice Creams Scoop Shops that you develop pursuant to the Development Schedule, which would otherwise be owed pursuant to each applicable Franchise Agreement.
B. DEVELOPMENT SCHEDULE.
Attachment B to this Agreement sets forth the schedule that you are hereby agreeing to satisfy as it relates to the development of Jeni's Ice Creams Scoop Shops (your "Development Schedule"), which may include one or more periods for you to develop and open a specified number of Jeni's Ice Creams Scoop Shops (each a "Development Period"). You must satisfy all of the conditions described in Section 2.C below for each Jeni's Ice Creams Scoop Shop in your Development Schedule by the
end of the applicable Development Period. You may not open more than the cumulative number of Jeni's
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream relies on the franchisee's representation that they have independently investigated and determined they can meet the development obligations outlined in the Development Schedule. The Development Schedule, detailed in Attachment B of the Development Agreement, specifies the number of Jeni's Ice Creams Scoop Shops the franchisee must develop and open within defined Development Periods. Cream does not represent that the Development Area can support the number of Scoop Shops specified in the Development Schedule.
This means that Cream places the onus on the franchisee to conduct thorough due diligence to assess the feasibility of the Development Schedule. The franchisee is expected to evaluate market conditions, site availability, and their own financial and operational capabilities before committing to the development obligations. This independent investigation is crucial, as Cream explicitly states that the Development Schedule is not a guarantee of success or site availability.
Prospective Cream franchisees should carefully consider this requirement for independent investigation. It is advisable to conduct comprehensive market research, including demographic studies, competitive analysis, and site assessments, to determine the viability of meeting the Development Schedule. Franchisees should also realistically assess their financial resources and operational expertise to ensure they can fulfill the development obligations. Failure to meet the Development Schedule can result in termination or reduction of the Development Area, as detailed in Section 2.D of the agreement.