Does Cream or its affiliates have a fiduciary obligation to franchisees for administering the Brand Fund?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to the 2025 FDD, Cream and its affiliates do not have any fiduciary duty to franchisees regarding the Brand Fund. Cream has exclusive control over the Brand Fund's programs and services. Cream is not obligated to spend any amount on marketing in any specific market.
Cream may use the Brand Fund to cover costs related to advertising, marketing, and public relations for the Cream system and Jeni's Ice Creams Scoop Shops. These expenses can include creating materials, sponsoring events, maintaining websites, and compensating personnel who manage the Brand Fund. Cream can modify these expenditures at any time.
Cream does not provide franchisees access to the Brand Fund's financial statements. Cream can also reduce, suspend, or terminate Brand Fund contributions and operations. If the Brand Fund is terminated, Cream will use the remaining balance according to its System Standards. Cream can also maintain multiple Brand Funds or consolidate them.