Which section of the Cream Franchise Agreement details the franchisee's responsibilities regarding pre-opening purchases and leases?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Prior to Opening Your Shop
Before you begin operating your Shop, we or our designees will:
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- If you have not received approval for a Premises for your Shop upon signing your agreement, we will review and approve or disapprove a proposed site for your Shop (Area Development Agreement, Section 2.C; Franchise Agreement – Sections 2.A).
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- Review and approve or disapprove the Construction Plans and Lease (each defined below) for your Shop. Other than the Proprietary Products sold by Parent, we do not directly provide, deliver, or install any equipment, signs, fixtures, opening inventory, or supplies for our franchisees (Franchise Agreement – Section 2.B and 2.C).
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- If you are opening your first Jeni's Ice Creams Scoop Shop, provide the Initial Training Program to your Mandatory Trainees (Franchise Agreement – Section 4.A).
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- If you are opening your first Jeni's Ice Creams Scoop Shop, provide on-site opening support for five days in connection with your grand opening (Franchise Agreement – Section 4.C).
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- Make our Brand Manual available to you (Franchise Agreement − Section 4.E).
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- Approve or disapprove your grand opening advertising program (Franchise Agreement Section 9.A).
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- Review and either approve or disapprove your Shop to open for business (Franchise Agreement – Section 2.C).
Site Selection
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–27)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Item 11 discusses the franchisee's responsibilities for pre-opening purchases and leases, specifically referencing Sections 2.A, 2.B and 2.C of the Franchise Agreement. It states that Cream must approve the Construction Plans and Lease for the shop. Cream does not directly provide, deliver, or install any equipment, signs, fixtures, opening inventory, or supplies for its franchisees, except for Proprietary Products sold by Parent.
Item 11 also states that once Cream approves the lease, the franchisee must promptly apply for permits and local licenses to complete construction. The franchisee is responsible for conforming the premises to local ordinances and building codes, obtaining the required permits, and constructing, remodeling, decorating, and outfitting the premises to meet Cream's specifications. The franchisee must also obtain all required zoning changes, planning consents, building, utility, sign, and business permits and licenses necessary to lawfully open and operate their shop.
Furthermore, the franchisee is responsible for developing and preparing the shop for opening in accordance with the Franchise Agreement and Cream's System Standards, at their own cost. The opening date depends on several factors, including obtaining Cream's approval of the premises, Construction Plans, and Lease; obtaining necessary permits and licenses; constructing the shop according to approved Construction Plans and System Standards; obtaining and installing required fixtures, equipment, signage, décor, and other assets; obtaining all pre-opening inventory and supplies; satisfying training requirements; obtaining required insurance policies; and satisfying other pre-opening requirements in the Franchise Agreement and obtaining Cream's approval to open.