Under what conditions will the term of the Cream development agreement expire?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The term of this Agreement (the "Term") will begin on the Effective Date and, unless sooner terminated as provided herein, will expire on the earlier of (1) the date on which the last Jeni's Ice Creams Scoop Shops required to be opened in order to satisfy the Development Schedule opens for regular business, or (2) the last day of the last Development Period (defined below) of the Development Schedule. You may not extend the Term of this Agreement without our approval, which we will grant in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the term of the Cream development agreement will begin on the effective date. Unless terminated earlier, the agreement will expire based on two conditions. The first condition is the date on which the last Jeni's Ice Creams Scoop Shops required to be opened to satisfy the Development Schedule opens for regular business. The second condition is the last day of the last Development Period of the Development Schedule, whichever comes first.
Cream does not allow franchisees to extend the term of the development agreement without their approval, which they will grant at their sole discretion. This means a franchisee cannot assume they will be able to extend their development agreement, even if they are making progress towards opening the required number of locations.
This is a fairly standard clause in franchise development agreements. It is important for prospective Cream franchisees to understand the development schedule and ensure they can meet the required opening dates. Failure to do so could result in the expiration of the agreement and loss of development rights.