factual

Who specifies the alterations needed to distinguish a former Cream shop?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (4) if we do not exercise our option to purchase your Shop under Section 15.D below, promptly and at your own expense, make the alterations we specify to distinguish your Shop clearly from its former appearance and from other Jeni's Ice Creams Scoop Shops, including by removing all materials and signage bearing our Marks and removing from both the interior and exterior of the Premises all materials and components of our trade dress as we determine to be necessary in order to prevent public confusion and in order to comply with the non-competition provisions set forth in Section 15.C;

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, if Cream does not exercise its option to purchase a franchisee's shop, the franchisee must promptly make alterations to distinguish the shop from its former appearance and from other Cream shops. Cream specifies these alterations, which the franchisee must complete at their own expense. These alterations include removing all materials and signage bearing Cream's Marks and removing all materials and components of Cream's trade dress from the interior and exterior of the premises. Cream determines what is necessary to prevent public confusion and comply with non-competition provisions.

This means that if a Cream franchise agreement ends and Cream does not buy the location, the franchisee is responsible for changing the shop's appearance so it no longer resembles a Cream shop. This includes removing Cream's branding and trade dress, with the specific changes dictated by Cream.

For a prospective franchisee, this highlights the importance of understanding the potential costs associated with decommissioning a Cream shop if the franchise agreement is not renewed or is terminated. The franchisee will bear the expense of these alterations. It is also important to note that the specific alterations are determined by Cream, giving the franchisee limited control over the process.

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.