Does Cream allow competition from other franchisees within my Development Area under the Area Development Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory under the Area Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, as long as you are in compliance with your Area Development Agreement, all Franchise Agreements signed pursuant to the Area Development Agreement, and subject to the exclusions and limitations described below, neither we nor any of our affiliates will establish or operate or authorize any other person to establish or operate a Jeni's Ice Creams Scoop Shop in your Development Area. Otherwise, you have no territorial protection and we and our affiliates retain all rights to conduct business activities of any kind, including the right to:
(1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the System, at any location outside the Development Area, on such terms and conditions we deem appropriate;
(2) establish and operate, and allow others to establish and operate, any other type of business, including any business that may offer products and services which are identical to, similar to, or competitive with products and services offered by Jeni's Ice Creams Scoop Shops, under trade names, trademarks, service marks, and commercial symbols other than the "Jeni's®" name and marks, anywhere in the world, including in the Development Area;
Source: Item 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if you sign an Area Development Agreement, you will not receive an exclusive territory. Cream retains the right to allow competition from other franchisees, outlets they own, or other channels of distribution or competitive brands they control within your Development Area.
Even with an Area Development Agreement, Cream retains significant rights to conduct business activities of any kind in any location. This includes the right to establish and operate other Cream locations outside your Development Area, as well as operate other types of businesses, even those that compete with Cream, under different brand names within your Development Area. Cream can also establish other distribution channels, such as retail sales or online platforms, within your Development Area.
Cream also retains the right to establish and operate Cream locations or other businesses using the Cream system at non-traditional venues like airports or casinos within your Development Area. They can also conduct marketing and promotional activities in your Development Area. Cream can also be acquired by or acquire any other business that is similar to Cream, even in your protected territory.
As a Cream franchisee, it is crucial to understand that while you may have a Development Area, Cream retains considerable freedom to operate and allow others to operate businesses that may compete with your Cream locations. This lack of exclusivity could impact your potential revenue and market share.