Besides the Development Area restrictions, what rights do Cream and its affiliates retain to conduct business activities?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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;
- (3) establish, and allow others to establish, businesses and distribution channels other than a Jeni's Ice Creams Scoop Shop (including, selling products at retail, wholesale, or through the internet, catalog sales, telemarketing, direct marketing, e-commerce, product lines in other businesses, or through any other digital presence), wherever located or operating, including in your Development Area, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that operate under trade names, trademarks, service marks, or commercial symbols that are similar to, the same, or competitive with the Marks, and/or that sell products or services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, including the offer and sale of Jeni's® -branded ice cream or products at third-party businesses;
- (4) establish and operate, and allow others to establish and operate, any Jeni's Ice Creams Scoop Shop, or other business using the System, and/or offering and selling any of the products or services that are similar to, the same, or competitive with those products or services offered by Jeni's Ice Creams Scoop Shops, at or through any non-traditional venues, including temporary or seasonal facilities or businesses operated within any larger venue or closed market such as an airport, hospital or medical center, casino or gaming center, convention or business center, fairground, state, local, or national park, hotel or resort, military base, transportation or transit center, university stadium or entertainment center, at any location in the world, including in the Development Area;
- (5) conduct marketing, advertising, and/or other promotional activities, events, and campaigns, at any location in the world, including in the Development Area, including events, activities, and campaigns that involve product giveaways and/or the offer and sale of products and services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, and/or using the Marks;
- (6) be acquired by or acquire (regardless of the form of transaction(s)), any other business, including businesses that operate or allow others to establish and operate businesses similar to, the same, or competitive with Jeni's Ice Creams Scoop Shops, at any location in the world, including in the Protected Territory (and in the event of such an acquisition, we and/or the acquirer and its affiliates will have the right to continue to establish and operate, and authorize others to establish and operate, such businesses, at any location in the world, including in the Development Area); and
(7) engage in all other activities not expressly prohibited by the Area Development Agreement, at any location in the world, including in the Development Area.
The size of your Development Area will depend on the number of Jeni's Ice Creams Scoop Shops you develop, the geography and demographics of the region, traffic patterns, competition, site availability, your experience, and other factors we establish. You will know the size of the Development Area before you sign the Area Development Agreement. You are responsible for locating and presenting to us proposed sites for Jeni's Ice Creams Scoop Shops in the Development Area. We will approve or disapprove the proposed site for any Jeni's Ice Creams Scoop Shop based on our then-current standards.
If you fail to comply with the Development Schedule, in addition to our other remedies under the Area Development Agreement, we may terminate or reduce the size of your Development Area, and/or terminate the territorial protections that you have in some or all of your Development Area. Otherwise, continuation of your territorial rights under the Area Development Agreement does not depend on your achieving a certain sales volume, market penetration, or other contingency.
Franchise Agreement
You will not receive an exclusive territory under the Franchise 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 Franchise Agreement and all other agreements with us and our affiliates, 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 the geographic area designated in your Franchise Agreement (your "Protected Territory").
If you have not selected a site for your Shop as of the effective date of the Franchise Agreement, we will identify the Protected Territory once you sign your approved Lease. If a Protected Territory is not designated in your Franchise Agreement, or until such time that one is, you have not been awarded any Protected Territory. If we identify a site selection area in your Franchise Agreement, that area is strictly to limit your site selection activities. You will receive no territorial protection of any kind in the site selection area, or any other geographic area, other than your Protected Territory.
Other than your Protected Territory, if any, you have no territorial protection and we and our affiliates retain all rights to conduct business activities of any kind in any location, including the right to:
(1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the Marks and the System, at any location outside the Protected Territory, 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 Marks, anywhere in the world, including in the Protected Territory;
(3) establish, and allow others to establish, businesses and distribution channels other than a Jeni's Ice Creams Scoop Shop (including, selling products at retail, wholesale, or through any Digital Presence), wherever located or operating, including in your Protected Territory, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that operate under trade names, trademarks, service marks, or commercial symbols that are similar to, the same, or competitive with the Marks, and/or that sell products or services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, including the offer and sale of Jeni's® -branded ice cream or products at third-party businesses;
Source: Item 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, outside of the Development Area restrictions, Cream and its affiliates retain significant rights to conduct business activities of any kind. For Area Development Agreements, Cream can establish and operate Jeni's Ice Creams Scoop Shops outside the Development Area under terms they deem appropriate. They can also establish other types of businesses, even those that compete with Jeni's Ice Creams Scoop Shops, using different brand names and trademarks anywhere in the world, including within the Development Area. Cream can also be acquired by or acquire other businesses, including those that are similar to or competitive with Jeni's Ice Creams Scoop Shops, and continue to operate those businesses anywhere in the world, including in the Development Area. Finally, Cream can engage in any activities not expressly prohibited by the Area Development Agreement, anywhere in the world, including in the Development Area.
For Franchise Agreements, Cream and its affiliates retain similar broad rights outside the Protected Territory. They can establish Jeni's Ice Creams Scoop Shops at any location outside the Protected Territory under terms they consider appropriate. They can also establish other types of businesses, including those that compete with Jeni's Ice Creams Scoop Shops, using different brand names and trademarks anywhere in the world, including within the Protected Territory. Cream can establish businesses and distribution channels other than Jeni's Ice Creams Scoop Shops, such as retail sales, wholesale, or online sales, anywhere in the world, including in the Protected Territory.
Additionally, Cream can establish Jeni's Ice Creams Scoop Shops or other businesses using the System in non-traditional venues like airports, hospitals, casinos, or parks, anywhere in the world, including in the Protected Territory. They can conduct marketing and promotional activities anywhere in the world, including in the Protected Territory. Cream can also be acquired by or acquire other businesses, including those that are similar to or competitive with Jeni's Ice Creams Scoop Shops, and continue to operate those businesses anywhere in the world, including in the Protected Territory. Finally, Cream can engage in any activities not expressly prohibited by the Franchise Agreement, anywhere in the world, including in the Protected Territory.
Cream is not required to pay franchisees if they exercise any of these rights. This extensive reservation of rights means that a Cream franchisee's territory is limited, and Cream retains considerable freedom to operate and compete both inside and outside the franchisee's designated area. A prospective franchisee should carefully consider these non-exclusivity terms and the potential for competition from Cream and its affiliates when evaluating the franchise opportunity.