factual

What role does Cream play in approving a franchisee's grand opening advertising program?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

e buying this franchise upon your request.

Advertising and Promotion

Grand Opening Advertising. You must spend at least $20,000 for a grand opening advertising program for your Shop. You must spend this amount in addition to all other amounts you must spend on advertising under the Franchise Agreement. The amount you spend on grand opening advertising will not count towards your Brand Fund Contribution (defined below). You must submit a plan for your grand opening marketing program to us for our approval at least 75 days before your expected Opening Date, and to complete all grand opening advertising pursuant to the plan we have approved. You must also use any media, materials, programs, and strategies that we require in connection with the grand opening advertising program.

Brand Fund. We have established a brand promotion fund (the "Brand Fund") to administer certain advertising, marketing, and public relations programs for the System, the Jeni's® brand, and the promotion of Jeni's Ice Creams Scoop Shops. You must contribute to the Brand Fund the amount that we prescribe (the "Brand Fund Contribution"). Currently, the Brand Fund Contribution is 2% of Net Sales. We may modify the amount of the Brand Fund Contribution with 30 days prior notice to you, in an amount up to 4% of Net Sales.

We are not required to spend any amount on marketing within any particular market. We will have exclusive control over all programs and services administered by the Brand Fund, including over the creative concepts, materials, and campaigns and their geographic market, media placement and allocation. The Brand Fund may pay for preparing and producing video, audio, and written materials and electronic media; sponsoring, supporting, and/or donating proceeds to one or more charitable, social, or community organizations or initiatives and/or hosting campaigns, initiatives, and/or events for the foregoing; developing, implementing, and maintaining any website, domain name, email

address, social media account, username, other digital presence or presence on any electronic, virtual, or digital medium of any kind (each a "Digital Presence") or other software or applications; administering national, regional, digital, or local advertising and marketing campaigns and/or programs; using advertising, promotion, and marketing agencies and other advisors to provide assistance;

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, Cream must approve a franchisee's grand opening advertising program. Prior to opening their shop, franchisees are required to submit a plan for their grand opening marketing program to Cream for approval at least 75 days before the expected opening date. Franchisees must complete all grand opening advertising according to the approved plan.

Cream mandates that franchisees spend a minimum of $20,000 on the grand opening advertising program for their shop. This amount is in addition to any other advertising expenses required under the Franchise Agreement and does not count towards the Brand Fund Contribution. Franchisees are also obligated to use any media, materials, programs, and strategies that Cream requires for the grand opening advertising program.

Additionally, Cream sets System Standards for all advertising, requiring franchisees to use approved forms of advertisement and include links or references to Digital Presences as prescribed by Cream. Franchisees must submit samples of all advertising, promotional, and marketing materials not prepared or previously approved by Cream at least 14 days before use. If written approval is not received within 14 days of Cream receiving the materials, the materials are deemed disapproved. Cream retains the right to withdraw approval of advertising materials at any time and may also control Digital Presences associated with the Marks or the franchisee's shop.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.