After the Cream agreement is terminated, what standards must you comply with in connection with winding down your business?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement you and your owners must immediately: (1) cease conducting the business granted hereunder or holding yourself out to the public as being a developer of Jeni's Ice Creams Scoop Shops except as permitted under Franchise Agreements; (2) return to us or destroy (as we require) any and all Confidential Information (other than as used by you in connection with the operation of any Jeni's Ice Creams Scoop Shop under a Franchise Agreement with us); (3) comply with all other standards we establish from time to time (and all applicable laws) in connection with the wind-down of your business contemplated by this Agreement; and (4) without limiting any other rights or remedies to which we may be entitled, you must pay all amounts owing to us pursuant to this Agreement up to the date of termination.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, upon termination or expiration of the agreement, franchisees must adhere to specific standards during the wind-down of their business. These standards include immediately ceasing to conduct the business granted under the agreement and refraining from presenting themselves to the public as a Cream developer, except if permitted under a separate Franchise Agreement. Franchisees must also return or destroy all Confidential Information as required by Cream, except as used under another Franchise Agreement.
Additionally, franchisees must comply with all standards established by Cream and all applicable laws related to winding down their business. This encompasses various aspects of ceasing operations, such as closing the shop to customers, stopping the sale of any products or services from the shop, and discontinuing the use of Cream's marks or any similar identifying elements. Franchisees must also cancel or assign any assumed name registrations related to the use of Cream's marks.
Moreover, franchisees are obligated to make alterations to distinguish their former Cream shop from its previous appearance and other Cream locations if Cream does not exercise its option to purchase the shop. This includes removing all materials and signage bearing Cream's marks and trade dress to prevent public confusion and comply with non-competition provisions. Franchisees must also cease using and transfer control of all contact information and digital presences used to operate the shop to Cream. Finally, franchisees must provide evidence of their compliance with these obligations to Cream's satisfaction.