Until what event does a Cream franchisee not have a Protected Territory?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to your continued compliance with this Agreement, and the reserved rights described below, during the Term, neither we nor any of our affiliates will establish, operate, or authorize any other person to establish or operate a Jeni's Ice Creams Scoop Shop in the area described in Attachment C (the "Protected Territory"). If you have not selected a site for your Shop as of the Effective Date, we will identify the Protected Territory once you sign your approved Lease, as described in Section 2.B below. Until such time as we execute Attachment C to identify an approved Premises and Protected Territory for your Shop, you do not have a Protected Territory and/or any other territorial protection of any kind, including in the Site Selection Area and/or any other area surrounding your Premises.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee does not have a Protected Territory until Cream executes Attachment C to identify an approved Premises and Protected Territory for the franchisee's Shop. This attachment is finalized once the franchisee signs their approved Lease, as described in Section 2.B of the agreement.
Prior to the execution of Attachment C, the franchisee has no territorial protection, even within the Site Selection Area or any area surrounding the Premises. This means that until the lease is approved and the territory is defined, Cream retains the right to establish other Cream shops or allow other business activities of any kind in the area.
This lack of protection during the initial phase of the franchise agreement is a critical consideration for prospective franchisees. It highlights the importance of securing an approved location and lease as quickly as possible to gain the territorial protections afforded by the franchise agreement. Franchisees should prioritize site selection and lease negotiation to minimize the period during which they operate without a Protected Territory.