Under what conditions does Cream have the right to refuse a franchisee's request?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
(9) we are then-offering franchises for Jeni's Ice Creams Scoop Shops in your geographic market.
You acknowledge that we are not required to offer you a renewal franchise if you and/or your owners fail to meet the conditions set forth in this Section, regardless of whether we had or chose to exercise the right to terminate this Agreement during the Term under Section 14.C.
B. ACQUIRING A RENEWAL FRANCHISE.
If we agree to grant you a renewal franchise after we receive your notice that you wish to renew your franchise upon the expiration of the Term, our notice may describe certain remodeling, maintenance, expansion, improvements, technology upgrades, trade dress updates, and/or modifications required to bring your Shop into compliance with then-applicable System Standards for new Jeni's Ice Creams Scoop Shops, and state the actions you must take to correct operating deficiencies and the time period in which you must correct these deficiencies. If our notice states that you must remodel your Shop and/or must cure certain deficiencies of your Shop or its operation as a condition to our granting you a renewal franchise, and you fail to complete the remodeling and/or to cure those deficiencies, we may revoke any approval of such a renewal franchise we may have awarded. If you fail to notify us of your election to acquire a renewal franchise within the prescribed time period, we need not grant you a renewal franchise.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has specific rights regarding a franchisee's request for renewal. Cream is not required to offer a renewal franchise if the franchisee and/or their owners fail to meet the conditions outlined in Section 14.C of the agreement. This holds true regardless of whether Cream chose to exercise its right to terminate the agreement during the initial term.
If Cream agrees to grant a renewal franchise, they may specify certain requirements in their notice to the franchisee. These could include remodeling, maintenance, expansion, improvements, technology upgrades, trade dress updates, or modifications needed to bring the shop up to current system standards for new Cream locations. The notice will also state the actions the franchisee must take to correct any operating deficiencies and the timeframe for doing so.
Cream retains the right to revoke any approval of a renewal franchise if the franchisee fails to complete the required remodeling or correct the specified deficiencies. Additionally, Cream is not obligated to grant a renewal franchise if the franchisee fails to notify them of their election to acquire a renewal franchise within the prescribed time period. This gives Cream considerable control over who is granted a renewal franchise and ensures that existing locations meet current brand standards.