What does the Representations Statement for Cream advise regarding consulting with other franchisees?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
CONSIN.**
The purpose of this Statement is to demonstrate to JENI'S SPLENDID ICE CREAMS FRANCHISE, LLC. ("Franchisor") that the person(s) signing below ("I," "me" or "my"), whether acting individually or on behalf of any legal entity established to acquire the franchise rights, (a) fully understands that the purchase of a Jeni's franchise rights is a significant long-term commitment, complete with its associated risks, and (b) is not relying on any statements, representations, promises or assurances that are not specifically set forth in Franchisor's Franchise Disclosure Document (the "FDD") in deciding to purchase the franchise. In that regard, I represent to Franchisor and acknowledge that:
| I understand that buying a franchise is not a guarantee of success. Purchasing or establishing any business is risky, and the success or failure of the franchise is subject to many variables such as my skills and abilities (and those of my partners, officers, employees), the time my associates and I devote to the business, competition, interest rates, the economy, inflation, operation costs, location, lease terms, the market place generally and other economic and business factors. I am aware of and am willing to undertake these business risks. I understand that the success or failure of my business will depend primarily upon my efforts and not those of Franchisor. | INITIAL: |
|---|---|
| I received a copy of the FDD at least 14 calendar days before I executed a Franchise | INITIAL: |
| Agreement or paid Franchisor or its affiliates any fees. I understand that all of my rights and | |
| responsibilities and those of Franchisor in connection with the franchise are set forth in these | |
| agreements and only in these agreements. I have had the opportunity to personally and | |
| carefully review these documents and have, in fact, done so. I have been advised to have | |
| professionals (such as lawyers and accountants) review the documents for me and to have | |
| them help me understand these documents. I have also been advised to consult with other | |
| franchisees regarding the risks associated with the purchase of the franchise. |
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Representations Statement advises prospective franchisees to consult with existing franchisees about the risks associated with purchasing a Cream franchise. This recommendation is part of a broader disclosure aimed at ensuring franchisees acknowledge the risks of franchise ownership and have independently verified the information provided by Cream.
This advice highlights the importance of due diligence in the franchise purchasing process. By speaking with current Cream franchisees, potential buyers can gain firsthand insights into the day-to-day realities of operating a franchise, including challenges and opportunities. This direct feedback can be invaluable in making an informed decision.
Cream's encouragement of franchisee consultation aligns with standard industry practice, where franchisors often provide a list of current franchisees for prospective buyers to contact. Engaging with these individuals allows potential franchisees to assess the accuracy of the franchisor's claims and develop a realistic understanding of what it takes to succeed within the Cream system. It is important to note that while Cream advises this consultation, the ultimate success of the franchise depends on the franchisee's efforts.