Upon termination or expiration of the Cream agreement, what must owners immediately do with their shop?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, you and your owners must immediately:
- (1) close your Shop for business to customers and cease to directly or indirectly sell any products and services of any kind and in any manner from your Shop and/or using the Marks, unless we direct you otherwise in connection with our exercise of our option to purchase pursuant to Section 15.D;
- (2) cease to directly or indirectly use any Mark, any colorable imitation of a Mark, other indicia of a Jeni's Ice Creams Scoop Shop, or any trade name, trademark, service mark, or other commercial symbol that indicates or suggests a connection or association with us or the System, in any manner or for any purpose (except in connection with other Jeni's Ice Creams Scoop Shops you operate in compliance with the terms of a valid Franchise Agreement with us);
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, upon termination or expiration of the Cream Franchise Agreement, the franchisee and their owners must immediately close the shop to customers and cease selling any products or services from the shop, unless Cream directs otherwise in connection with exercising its option to purchase the shop.
Additionally, the franchisee must immediately cease using any Cream Marks, imitations of the Marks, or any trade name, trademark, service mark, or other commercial symbol that indicates a connection with Cream or its system. The only exception to this is if the franchisee operates other Cream shops under a valid franchise agreement.
These stipulations are fairly standard in franchising. They protect Cream's brand and prevent franchisees from operating a competing business while leveraging Cream's trademarks and brand recognition after the agreement ends. Franchisees should be aware of these restrictions and plan accordingly when considering the franchise opportunity, as they will need to rebrand or cease operations immediately upon termination or expiration of the agreement.