Does Cream account for the Brand Fund separately from its other funds?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We will account for the Brand Fund separately from our other funds. However, neither we nor any of our affiliates has any fiduciary obligation to you or any other person for administering the Brand Fund. The Brand Fund may spend in any fiscal year more or less than the total Brand Fund Contributions in that year, borrow from us or others (paying reasonable interest) to cover deficits, or invest any surplus for future use. We may administer the Brand Fund through a separate entity whenever we deem appropriate, and such entity will have all of the rights and duties specified herein. We have the right, but no obligation, to use collection agents and institute legal proceedings to collect Brand Fund Contributions at the Brand Fund's expense. We may also forgive, waive, settle, and compromise all claims by or against the Brand Fund in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream will account for the Brand Fund separately from its other funds. The Brand Fund is used to promote the Cream brand and Jeni's Ice Creams Scoop Shops. However, Cream does not have any fiduciary obligation to franchisees regarding the Brand Fund.
Cream has exclusive control over the Brand Fund's programs and services, including creative concepts, materials, campaigns, and their geographic market, media placement, and allocation. The Brand Fund may cover various expenses, such as preparing materials, sponsoring events, maintaining digital presences, administering advertising campaigns, and covering administrative costs, including salaries for personnel managing the Brand Fund. Cream can modify these programs and expenditures at its discretion.
Cream may spend more or less than the total Brand Fund contributions in a given fiscal year, borrow funds to cover deficits, or invest any surplus for future use. Cream also has the right to reduce, suspend, or terminate the Brand Fund with prior written notice to franchisees. If terminated, the remaining balance will be spent in accordance with the terms outlined in the FDD. Cream may also maintain multiple Brand Funds or consolidate them, provided each fund remains subject to the outlined terms.