Does Cream require franchisees to negotiate and execute their own Lease?
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, franchisees are responsible for negotiating and securing their own leases, but Cream maintains significant oversight and approval rights. Before a Cream franchisee can enter into any lease agreement, Cream must approve the site. To get approval, the franchisee must provide Cream with all requested information and materials to assess the proposed location, as well as the franchisee's financial and operational capabilities. Cream has the absolute right to disapprove any proposed development for any reason.
Cream's involvement extends to the lease terms themselves. The landlord must acknowledge the franchise relationship and agree to certain conditions that protect Cream's interests, such as the right to collateral assignment of the lease and the ability to enter the premises under specific circumstances. The landlord must also agree to allow Cream's standard signage and designs, and to provide Cream with notice and an opportunity to cure any default by the franchisee. Furthermore, the lease cannot be amended without Cream's prior written consent.
Cream also requires that to renew the franchise agreement, the franchisee must maintain possession of the premises pursuant to a lease that Cream has approved, and the lease term must be no less than the full term of the renewal franchise. This ensures that Cream retains control over the location and that the franchisee continues to meet Cream's standards.
These requirements ensure that Cream maintains control over the brand's image and operations, even though the franchisee is responsible for securing the lease. This is a common practice in franchising, as it allows the franchisor to protect its brand and ensure consistency across all locations.