Can the term of the Cream development agreement be extended, and if so, under what conditions?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The term of this Agreement (the "Term") will begin on the Effective Date and, unless sooner terminated as provided herein, will expire on the earlier of (1) the date on which the last Jeni's Ice Creams Scoop Shops required to be opened in order to satisfy the Development Schedule opens for regular business, or (2) the last day of the last Development Period (defined below) of the Development Schedule. You may not extend the Term of this Agreement without our approval, which we will grant in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the term of the development agreement cannot be extended without Cream's approval. Cream retains the sole discretion to grant or deny any extension request.
The initial term of the Cream development agreement, as detailed in the FDD, begins on the effective date and concludes when either all required Cream Scoop Shops outlined in the Development Schedule are open for regular business, or on the last day of the final Development Period specified in the Development Schedule, whichever occurs first. This means a developer's rights are tied to a specific timeline and number of store openings.
Since Cream maintains complete authority over term extensions, prospective developers should carefully consider their ability to meet the initial development schedule. Developers should engage in thorough due diligence, including market research and financial planning, to ensure the feasibility of opening the required number of locations within the initially agreed-upon timeframe. If an extension is needed, it is not guaranteed and depends entirely on Cream's decision.