Does satisfying pre-opening requirements for a Cream franchise include payment of fees and satisfaction of training obligations?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
u 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.
We will count a Jeni's Ice Creams Scoop Shop toward the satisfaction of your Development Schedule only if you have satisfied all of the following conditions prior to the end of the applicable Development Period: (1) you have secured our approval of the proposed site of such Jeni's Ice Creams Scoop Shop; (2) you have executed our then-current form of Franchise Agreement for such Jeni's Ice Creams Scoop Shop by the timeline specified in the preceding paragraphs; (3) you have paid all associated fees for such Jeni's Ice Creams Scoop Shop arising under this Agreement and/or the Franchise Agreement; (4) you have executed a lease agreement or otherwise acquired occupancy rights to that premises on the terms described in your Franchise Agreement; and (5) you have secured our approval to open such Jeni's Ice Creams Scoop Shop, and such Jeni's Ice Creams Scoop Shop is open and operating in full compliance with its Franchise Agreement.
D. DEVELOPMENT DEFAULTS.
If you fail to comply with the Development Schedule, we reserve the right to terminate or reduce the size of your Development Area, and/or terminate the territorial protections that you have in some or all of your Development Area under Section 1.D, after which time we and our affiliates may establish or operate or authorize any other person to establish or operate a Jeni's Ice Creams Scoop
Shop in your current or former Development Area in our discretion. Notwithstanding the foregoing, nothing contained in this Section shall be deemed a waiver of our right to terminate this Agreement for failure to comply with the Development Schedule.
E. BUSINESS PLAN AND REPORTING.
Within 60 days after the Effective Date, you must prepare and give us a business plan including a projected schedule for Jeni's Ice Creams Scoop Shop development and detailed cost and revenue projections for your activities under this Agreement. At least 90 days before the start of each calendar year during the Term, you must update the business plan to cover both actual results for the previous year and projections for the then-current year.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, satisfying pre-opening requirements does include the payment of fees and the satisfactory completion of training obligations. Specifically, Cream will count a Jeni's Ice Creams Scoop Shop toward the satisfaction of the Development Schedule only if you have paid all associated fees arising under the agreement and/or the Franchise Agreement.
Furthermore, for the first Jeni's Ice Creams Scoop Shop that you develop, prior to your Opening Date, you (or if you are conducting business as an Entity, your Principal Owner) and your Shopkeeper (if applicable) (together, the "Mandatory Trainees") must complete a training program conducted by Cream on the material aspects of operating a Jeni's Ice Creams Scoop Shop to Cream's satisfaction. If Cream determines that the Mandatory Trainees cannot complete the Initial Training Program to their satisfaction, they may terminate the agreement.
If this is the first Jeni's Ice Creams Scoop Shop you develop, Cream will provide the Initial Training Program for up to three attendees that you select and they approve, at no cost to you, which must include your Mandatory Trainees, provided all attendees attend the Initial Training Program at the same time. Cream may charge you their then-current fee for the Initial Training Program if you request that more than three persons attend the Initial Training Program for your first Jeni's Ice Creams Scoop.