On whose decision can Cream rely in dealings with the franchisee entity?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to enter into a Franchise Agreement using any affiliated Entity, you must obtain our approval of such Entity and its owners and officers, under our then-current franchise approval process.
You must receive our approval of any site for a Jeni's Ice Creams Scoop Shop that you propose to develop in your Development Area before you enter into any lease or other agreement to secure the site. You agree to give us all information and materials we request to assess each Jeni's Ice Creams Scoop Shop that you propose to develop, as well as your financial and operational ability to develop and operate the proposed Jeni's Ice Creams Scoop Shop. We have the absolute right to disapprove any proposed development for any reason, including if: (1) it or you do not meet our then-current criteria for new franchise development, or (2) if you or your affiliates are not then in compliance with this Agreement or any Franchise Agreements with us.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee wishes to operate under an affiliated entity, Cream must approve that entity, including its owners and officers. This approval is based on Cream's then-current franchise approval process. Cream also retains the right to revise Attachment A of the franchise agreement, with the franchisee's consent, to reflect any permitted changes in the information it contains.
This means that Cream maintains control over who operates a franchise, even if it's through a separate business entity. A prospective franchisee cannot simply create a company to run the franchise without Cream's explicit consent. This ensures that Cream can assess the suitability of the entity and its principals, maintaining brand standards and protecting the franchise system.
Furthermore, Cream has the "absolute right to disapprove any proposed development for any reason," especially if the franchisee or its affiliates are not in compliance with the agreement. This clause gives Cream broad discretion in approving new locations and developments, allowing them to safeguard their brand and system standards. This could impact a franchisee's expansion plans if Cream deems the proposed site or the franchisee's operations to be non-compliant or unsuitable.