Under what conditions does Cream have the right to disapprove any proposed development?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You must receive our approval of any site for a Jeni's Ice Creams Scoop Shop that you propose to develop in your Development Area before you enter into any lease or other agreement to secure the site. You agree to give us all information and materials we request to assess each Jeni's Ice Creams Scoop Shop that you propose to develop, as well as your financial and operational ability to develop and operate the proposed Jeni's Ice Creams Scoop Shop. We have the absolute right to disapprove any proposed development for any reason, including if: (1) it or you do not meet our then-current criteria for new franchise development, or (2) if you or your affiliates are not then in compliance with this Agreement or any Franchise Agreements with us.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the absolute right to disapprove any proposed development for any reason. This includes situations where the proposed development or the franchisee does not meet Cream's then-current criteria for new franchise development. Cream can also disapprove a proposed development if the franchisee or its affiliates are not in compliance with the Development Agreement or any Franchise Agreements with Cream.
This provision grants Cream significant control over the development of new locations. Cream's criteria for new franchise development are subject to change, meaning that a site that was previously acceptable might later be rejected if Cream updates its criteria.
For a prospective Cream franchisee, this means that securing a site and incurring preliminary expenses does not guarantee approval. It is crucial to maintain compliance with all agreements and to stay informed about Cream's current development criteria to minimize the risk of disapproval. Franchisees should seek clarification from Cream regarding the specific criteria used for evaluating new sites and the process for appealing a disapproval decision.