Under the franchise agreement, what are Cream franchisees obligated to do regarding the operation and promotion of their Shop after the Opening Date?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms of this Agreement, we hereby grant you a franchise to develop, own, and operate a Jeni's Ice Creams Scoop Shop (your "Shop") on the terms described in this Agreement for a term that will begin on the Effective Date and will expire 10 years from your Effective Date unless sooner terminated under Section 14 (the "Term"). You agree to faithfully, honestly, and diligently perform your obligations under this Agreement and to use your best efforts to promote and operate your Shop from and after the Opening Date on a continuous basis for the entirety of the Term.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees have specific obligations regarding the operation and promotion of their shop. After the opening date, franchisees must faithfully, honestly, and diligently perform their obligations under the Franchise Agreement. This includes using their best efforts to promote and operate the shop on a continuous basis for the entire term of the agreement. The term of the franchise agreement begins on the effective date and expires 10 years from that date, unless terminated earlier.
This means that franchisees are expected to be fully committed to running their Cream shop in accordance with the standards and guidelines set forth in the franchise agreement. The requirement to use "best efforts" implies an ongoing commitment to marketing and managing the shop effectively to maximize its potential.
Failure to meet these obligations could potentially lead to a breach of the franchise agreement, which could have serious consequences, including termination of the franchise. Therefore, prospective Cream franchisees should carefully review the franchise agreement to fully understand their responsibilities and ensure they are prepared to meet these requirements.