Under what conditions can the Development Rights for Cream be exercised?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Rights may only be exercised for Jeni's Ice Creams Scoop Shops to be located in the Development Area. As long as you are in compliance with this Agreement and all Franchise Agreements (defined below) signed pursuant to this Agreement, and except as set forth in this Section 1.D, we will not, during the Term, operate or grant the right to anyone else to operate a Jeni's Ice Creams Scoop Shops within the Development Area, or grant Development Rights to anyone else to be exercised with your Development Area.
For the avoidance of doubt, we reserve for ourselves and our affiliates all rights not expressly granted to you in this Agreement and the right to do all things that we do not expressly agree in this Agreement not to do, in each case, without compensation to you, without regard to proximity to your Development Area, and on such terms and conditions as we deem appropriate. For example, and without limitation, we and our affiliates may, ourselves or through authorized third parties:
- (1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the System, at any location outside the Development Area, on such terms and conditions we deem appropriate;
- (2) establish and operate, and allow others to establish and operate, any other type of business, including any business that may offer products and services which are identical to, similar to, or competitive with products and services offered by Jeni's Ice Creams Scoop Shops, under trade names, trademarks, service marks, and commercial symbols other than the "Jeni's® " name and marks, anywhere in the world, including in the Development Area;
- (3) establish, and allow others to establish, businesses and distribution channels other than a Jeni's Ice Creams Scoop Shop (including, selling products at retail, wholesale, or through any online presence), wherever located or operating, including in your Development Area, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Development Rights granted to a franchisee can only be exercised for Jeni's Ice Creams Scoop Shops located within the Development Area specified in Attachment A of the agreement. As long as the franchisee is in compliance with the Development Agreement and all Franchise Agreements signed pursuant to it, Cream will not operate or grant the right to anyone else to operate a Jeni's Ice Creams Scoop Shops within the Development Area, or grant Development Rights to anyone else to be exercised within the franchisee's Development Area during the term of the agreement.
However, Cream retains specific rights, including the right to establish and operate Jeni's Ice Creams Scoop Shops outside the Development Area, and to establish and operate other types of businesses, even those that may offer similar or competitive products and services, under different trade names and trademarks, anywhere in the world, including within the Development Area. Cream also reserves the right to establish other distribution channels, such as retail, wholesale, or online sales, within the franchisee's Development Area.
To have a Jeni's Ice Creams Scoop Shop count toward the Development Schedule, the franchisee must meet several conditions before the end of the applicable Development Period. These conditions include securing Cream's approval of the proposed site, executing Cream's current form of Franchise Agreement, paying all associated fees, securing a lease agreement or occupancy rights, and obtaining Cream's approval to open the Scoop Shop, ensuring it operates in full compliance with the Franchise Agreement. Failure to comply with the Development Schedule may result in Cream terminating or reducing the size of the Development Area, or terminating the territorial protections, allowing Cream to establish or authorize others to operate a Jeni's Ice Creams Scoop Shop in the franchisee's current or former Development Area.