Can the terms of the renewal Cream franchise agreement differ materially from the original agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
When this Agreement expires, you may renew your franchise to operate your Shop for two successive terms of 5 years each, if you meet the following conditions:
- (7) you and your owners sign the franchise agreement and all other ancillary documents and guaranties we then use to grant franchises for Jeni's Ice Creams Scoop Shops (modified as necessary to reflect the fact that it is for a renewal franchise), which may contain provisions that differ materially from those contained in this Agreement, including changes to your Royalty, Brand Fund Contribution, and Protected Territory;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the terms of the renewal franchise agreement may differ materially from the original agreement. To renew the franchise for two successive terms of five years each, a franchisee must meet several conditions. One of these conditions is that the franchisee and their owners must sign the franchise agreement and any ancillary documents that Cream uses to grant franchises for Jeni's Ice Creams Scoop Shops.
Cream specifies that these documents may be modified as necessary to reflect that it is a renewal franchise. Importantly, the renewal franchise agreement may contain provisions that differ materially from those in the original agreement. These changes can include modifications to the royalty fees, brand fund contributions, and the protected territory granted to the franchisee.
This condition means that when a Cream franchisee seeks to renew their franchise agreement, they may be subject to new terms that are significantly different from their original agreement. These changes could affect the franchisee's costs, revenue potential, and competitive landscape. Therefore, it is essential for franchisees to carefully review the renewal agreement and understand the potential impact of any changes before agreeing to the renewal.