Does Cream allow franchisees to use Confidential Information for purposes beyond exercising development rights or operating Jeni's Ice Creams Scoop Shops?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All Confidential Information will be owned by us or our affiliates (other than personally identifiable information relating to the employees, officers, contractors, owners or other personnel of you, your affiliates, or your Jeni's Ice Creams Scoop Shop, and/or such other personally identifiable information designated by us from time to time). You acknowledge and agree that: (1) you will not acquire any interest in any of our Confidential Information, other than the right to use it as we specify under this Agreement or the Franchise Agreements you sign, in each case in accordance with the terms of such agreement; and (2) our Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you will protect it. You acknowledge that any unauthorized use or disclosure of our Confidential Information would be an unfair method of competition and a breach of trust and confidence and will result in irreparable harm to us and/or our affiliates. You and your owners agree 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 to):
- (a) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for exercise of your Development Rights in accordance with this Agreement, and/or the operation of Jeni's Ice Creams Scoop Shops under the respective Franchise Agreements, and not for any other purpose of any kind;
- (b) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and standards we establish from time to time, and our and our representative's instructions;
- (c) keep confidential and not disclose, sell, distribute, or trade our Confidential Information to any person other than those of your employees and representatives who need to know such Confidential Information for the purpose of assisting you in exercising your Development Rights in accordance with this Agreement, and/or operating Jeni's Ice Creams Scoop Shops in accordance with Franchise Agreements with us; and you agree that you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information;
- (d) not make unauthorized copies of any of our Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are explicitly restricted in how they can use the brand's Confidential Information. Franchisees and their related parties must process, retain, use, collect, and disclose Cream's Confidential Information strictly to the limited extent necessary for exercising their Development Rights or operating Jeni's Ice Creams Scoop Shops under the Franchise Agreements. Any other use is strictly prohibited. This includes adhering to Cream's privacy policies and standards for handling such information.
This restriction means a Cream franchisee cannot leverage Confidential Information, such as recipes, customer data, or operating manuals, for any business venture outside of their franchised Jeni's Ice Creams Scoop Shops. For example, a franchisee cannot use Cream's marketing strategies to promote a separate, independent business. The franchisee is also responsible for ensuring that their employees and representatives who have access to Confidential Information also adhere to these restrictions.
The FDD emphasizes that unauthorized use or disclosure of Cream's Confidential Information would be considered an unfair method of competition and a breach of trust, potentially leading to irreparable harm to Cream and its affiliates. This underscores the importance of safeguarding Confidential Information and adhering to the permitted uses outlined in the franchise agreement. Franchisees must take proactive measures to prevent unauthorized access, copying, or distribution of Confidential Information, as they will be held accountable for any violations, even those committed by their personnel.