What actions are Cream franchisees required to take to prevent disparagement by related parties?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
During and after the Term, you and your owners agree not to (and to use each of your best efforts to cause each of your respective current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns not to): (1) disparage or otherwise speak or write negatively, directly or indirectly, of us, our affiliates, any of our or our affiliates' directors, officers, employees, representatives or affiliates, current and former franchisees of us or our affiliates, the Jeni's® brand, the System, any Jeni's Ice Creams Scoop Shop, any business using the Marks, or any other brand concept operated, licensed, or franchised by us or our affiliates; or (2) take any other action which would, directly or indirectly, subject any of the foregoing to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact or injure the goodwill of the System or the Marks. Notwithstanding anything to the contrary, in no event will you be prohibited from providing truthful testimony in connection with a legal proceeding or governmental investigation. In addition, nothing in this Agreement shall prohibit you from reporting a suspected violation of law to the appropriate governmental agency or authority.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees have a responsibility to prevent disparagement of the Cream brand by related parties. During and after the franchise term, franchisees must ensure that they, their owners, and their current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns do not speak or write negatively, directly or indirectly, about Cream, its affiliates, directors, officers, employees, representatives, current and former franchisees, the Jeni's® brand, the System, any Jeni's Ice Creams Scoop Shop, or any other brand concept operated, licensed, or franchised by Cream or its affiliates.
This obligation extends to preventing any action that could subject the aforementioned parties or entities to ridicule, scandal, reproach, scorn, or indignity, or that could negatively impact or injure the goodwill of the System or the Marks. This requirement is in place both during the term of the franchise agreement and after its termination or expiration.
However, the non-disparagement clause does not prevent a franchisee from providing truthful testimony in connection with a legal proceeding or governmental investigation, or from reporting a suspected violation of law to the appropriate governmental agency or authority. This ensures that franchisees are not restricted from fulfilling legal obligations or reporting illegal activities, even if it involves Cream. This is a fairly standard clause in franchise agreements, intended to protect the brand's reputation while allowing for legal compliance and whistleblowing.