How does Cream administer the Brand Fund?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. We have established a brand promotion fund (the "Brand Fund") to administer certain advertising, marketing, and public relations programs for the System, the Jeni's® brand, and the promotion of Jeni's Ice Creams Scoop Shops. You must contribute to the Brand Fund the amount that we prescribe (the "Brand Fund Contribution"). Currently, the Brand Fund Contribution is 2% of Net Sales. We may modify the amount of the Brand Fund Contribution with 30 days prior notice to you, in an amount up to 4% of Net Sales.
We are not required to spend any amount on marketing within any particular market. We will have exclusive control over all programs and services administered by the Brand Fund, including over the creative concepts, materials, and campaigns and their geographic market, media placement and allocation. The Brand Fund may pay for preparing and producing video, audio, and written materials and electronic media; sponsoring, supporting, and/or donating proceeds to one or more charitable, social, or community organizations or initiatives and/or hosting campaigns, initiatives, and/or events for the foregoing; developing, implementing, and maintaining any website, domain name, email
address, social media account, username, other digital presence or presence on any electronic, virtual, or digital medium of any kind (each a "Digital Presence") or other software or applications; administering national, regional, digital, or local advertising and marketing campaigns and/or programs; using advertising, promotion, and marketing agencies and other advisors to provide assistance; supporting public relations, market research, and other advertising, promotion, and marketing strategy or implementation activities; and/or any other expenditures that are directly or indirectly related to promoting the Marks, the System, the brand, and/or Jeni's Ice Creams Scoop Shops. We may also use the Brand Fund to pay for the Brand Fund's administrative and overhead costs, including the reasonable salaries and benefits of personnel who manage and administer the Brand Fund, and any other expenses that we or our affiliates incur that are related to administering or directing the Brand Fund and its programs. We may modify Brand Fund expenditures at any time.
Neither we nor any of our affiliates has any fiduciary obligation to you or any other person for administering the Brand Fund. We will not make the financial statements of the Brand Fund available for review by franchisees. We may reduce or suspend Brand Fund Contributions and/or operations of the Brand Fund for one or more periods of any length and terminate (and, if terminated, reinstate) the Brand Fund and associated Brand Fund Contributions. If we terminate the Brand Fund, we will spend the remaining balance of the monies in the Brand Fund in accordance with our System Standards until such amounts are exhausted. We may elect to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds.
We do not currently have any franchisees, and therefore we did not collect any Brand Fund Contributions or spend any amounts from any Brand Fund on media production, media placement, administration, or to solicit new franchise sales in our most recently completed fiscal year. Jeni's Ice Creams Scoop Shops owned by us or our affiliates will contribute to the Brand Fund at the same rate as franchise-owned Jeni's Ice Creams Scoop Shops.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has established a Brand Fund to administer advertising, marketing, and public relations programs for the Cream system and Jeni's brand. Franchisees are required to contribute to this Brand Fund, with the current contribution set at 2% of Net Sales. Cream retains the right to modify this contribution amount with 30 days' notice, up to a maximum of 4% of Net Sales. Cream maintains exclusive control over the programs and services managed by the Brand Fund, including creative concepts, materials, campaigns, geographic market, media placement, and allocation.
The Brand Fund may be used for various purposes, including preparing and producing video, audio, written materials, and electronic media. It can also be used to sponsor charitable or community initiatives and events. Additionally, the fund covers the costs of developing and maintaining websites and other digital presences. Cream may also use the Brand Fund to cover its administrative and overhead costs, including salaries and benefits for personnel managing the fund, and any other expenses related to administering the Brand Fund and its programs. Cream retains the right to modify Brand Fund expenditures at any time.
Cream does not have any fiduciary obligation to franchisees regarding the Brand Fund's administration and will not provide franchisees with the Brand Fund's financial statements for review. Cream can reduce or suspend Brand Fund contributions or operations and even terminate the Brand Fund, with the remaining balance spent according to System Standards. Cream also has the option to maintain multiple Brand Funds based on geographic region or consolidate existing funds. Cream does not currently have any franchisees, and therefore did not collect any Brand Fund Contributions or spend any amounts from any Brand Fund on media production, media placement, administration, or to solicit new franchise sales in its most recently completed fiscal year.