Under which section of the Franchise Agreement are the fees outlined for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
Initial Franchise Fee
You must pay us an initial franchise fee of $40,000 when you sign the Franchise Agreement. The initial franchise fee is payable in a lump sum and non-refundable.
Initial Inventory
You must purchase your initial inventory of Proprietary Products and certain other inventory and supplies (including toppings, branded merchandise, gift cards, uniforms, and certain décor and decals) from Parent before you open your Shop. We estimate that the cost of these purchases from Parent prior to opening your Shop will range from $16,000 to $21,000. The cost of these purchases will depend on the size and specifications of your Shop, the cost of taxes and shipping in your area, the quantity of Proprietary Products you order, and similar market conditions. The cost of Proprietary Products you purchase from Parent is payable on placing each order and is non-refundable.
Gift Card Set-Up Fee
You must pay us an initial gift card set-up fee of $149 prior to opening your Shop. The gift card setup fee is payable in lump sum and is non-refundable.
Development Fee
If you are signing an Area Development Agreement, you must pay a development fee when you sign the Area Development Agreement (the "Development Fee"). The Development Fee will be: (i) $105,000 for three Jeni's Ice Creams Scoop Shops; (ii) $140,000 for four Jeni's Ice Creams Scoop Shops; and (iii) $150,000 for five Jeni's Ice Creams Scoop Shops. The Development Fee will be paid in lieu of the Initial Franchise Fee due for the Jeni's Ice Creams Scoop Shops that you develop pursuant to the Development Schedule, which would otherwise be owed pursuant to each applicable Franchise Agreement. The Development Fee is payable in lump sum and is non-refundable.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–27)
What This Means (2025 FDD)
According to the 2025 FDD, Item 5 outlines the initial fees for a Cream franchise. These fees include the initial franchise fee, initial inventory costs, gift card set-up fee, and development fee if applicable. The initial franchise fee is $40,000, payable in a lump sum and is non-refundable.
Prospective Cream franchisees should also be aware of the initial inventory costs, which range from $16,000 to $21,000. This covers proprietary products, toppings, branded merchandise, gift cards, uniforms, and certain décor and decals. The cost depends on the shop's size, specifications, taxes, shipping, and the quantity of proprietary products ordered. Additionally, there is a $149 initial gift card set-up fee, which is also non-refundable.
For those signing an Area Development Agreement, a development fee is required. This fee varies based on the number of Jeni's Ice Creams Scoop Shops to be developed: $105,000 for three shops, $140,000 for four shops, and $150,000 for five shops. The development fee is paid instead of the initial franchise fee for each shop developed under the Development Schedule and is also non-refundable. Understanding these initial fees is crucial for potential franchisees to accurately assess their initial investment.