Is the transferee required to sign Cream's current franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
transferee agrees to upgrade, remodel, and refurbish your Shop in accordance with our then-current specifications for Jeni's Ice Creams Scoop Shops within the time period we specify following the date of the transfer and the transferee agrees to escrow an amount we approve for payment of the required upgrade, remodel or refurbishment;
- (8) the transferee must (if the transfer is of this Agreement or your Shop), sign our then-current form of franchise agreement and related documents, any and all of the provisions of which may differ materially from any and all of those contained in this Agreement, including the Royalty and the Brand Fund Contribution; provided, that the term of the new franchise agreement signed will equal the then-remaining Term;
- (9) the transferee(s) must (if the transf
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee transfers their existing franchise agreement or shop, the transferee must sign Cream's then-current form of franchise agreement. The terms in the new franchise agreement may differ significantly from the original agreement, potentially affecting aspects like royalty fees and brand fund contributions. However, the term of the new franchise agreement will match the remaining term of the original agreement.
If the transfer involves any beneficial or ownership interest in the franchisee's business, the transferee must sign Cream's current form of guaranty. This guaranty ensures that the transferee is personally bound by all provisions of the franchise agreement and any related ancillary agreements. Additionally, the transferee must provide an updated Attachment A to Cream.
These conditions are part of Cream's requirements for approving a transfer, which also include submitting an application with detailed information about the transferee, ensuring compliance with all agreements, providing executed transfer documents, and signing required releases and covenants. The transfer is also contingent on correcting any existing shop deficiencies or agreeing to upgrade the shop to meet Cream's current standards. A transfer fee of $25,000 is also required.