Is Cream's review or approval of a franchisee's Construction Plans for the franchisee's benefit?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
t our prior approval. If we approve the relocation of your Shop, you must pay a relocation fee of $7,500, plus reimbursement of our out-of-pocket expenses processing the change, including legal fees.
You agree to send us all of the information we require for the proposed site. We will make all determinations about whether to approve or disapprove a site based on our then-current criteria, which may change periodically. We are not obligated to visit any site you propose for your Shop in person, though we may elect to do so. We will not charge a fee in connection with the first such site evaluation visit we elect to conduct; however, if we require, or if you request, any additional site evaluation visits (with respect to the same site or alternative sites), you must pay us $2,000 per site evaluation visit, plus reimburse the out-of-pocket costs and expenses we and our representatives incur, including travel, food, accommodations, and third-party fees. If we recommend, approve, or give you information regarding a site for the Premises, that is not a representation or warranty of any kind, express or implied, of its suitability for a Jeni's Ice Creams Scoop Shop or any other purpose. Our recommendation and/or approval of any site indicates only that the site meets our then-current minimum criteria which have been established for our own purposes and are not intended to be relied on by you as an indicator of success. You agree that you are not relying on our site approval for your benefit. You further acknowledge that you have been advised to conduct your own indep
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
Based on the 2025 FDD, Cream requires franchisees to submit site information for approval, but this approval is primarily for Cream's benefit, not the franchisee's. Cream makes determinations about site approval based on their own criteria, which can change. While Cream may visit potential sites, they are not obligated to do so. If a franchisee requests additional site evaluation visits, they must pay Cream $2,000 per visit, plus cover all associated costs.
Cream explicitly states that any recommendation or approval of a site is not a warranty of its suitability or potential for success. The FDD emphasizes that Cream's site approval only indicates that the site meets their minimum criteria, which are established for Cream's purposes. Franchisees are cautioned against relying on Cream's approval as an indicator of success and are advised to conduct their own independent investigations before selecting a site.
Ultimately, the FDD makes it clear that franchisees are responsible if the chosen site, even one recommended or approved by Cream, does not meet their expectations. This means that while Cream has approval rights over the site, the onus is on the franchisee to ensure the site is viable for their business needs through their own due diligence.