Does Cream take responsibility for a franchisee's ability to meet the business plan?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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. You acknowledge and agree that, while we may review and provide comments on the business plan and any updates you submit to us, regardless of whether we approve, disapprove, require revisions, or provide other comments with respect to the business plan or any updated business plan, we take no responsibility for and make no guarantees or representations, expressed or implied, with respect to your ability to meet the business plan or to achieve the results set forth therein. You bear the entire responsibility for achievement of the business plan you develop.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream does not take responsibility for a franchisee's ability to meet the business plan. Within 60 days after the agreement's effective date, the franchisee must prepare and provide Cream with a business plan that includes a projected schedule for Jeni's Ice Creams Scoop Shop development, along with detailed cost and revenue projections. At least 90 days before each calendar year, the franchisee must update the business plan to cover actual results from the previous year and projections for the current year.
Cream may review and provide comments on the business plan and any updates. However, regardless of whether Cream approves, disapproves, requires revisions, or provides comments, Cream takes no responsibility and makes no guarantees or representations regarding the franchisee's ability to meet the business plan or achieve the results outlined in it. The franchisee bears the entire responsibility for achieving the business plan they develop.
This means that while Cream requires a business plan and may offer feedback, the franchisee is solely accountable for its execution and success. This is a fairly standard practice in franchising, as the franchisee is the one managing the day-to-day operations and local market conditions. Prospective franchisees should carefully consider their ability to develop and implement a successful business plan, as their performance against this plan will be their sole responsibility.