Besides disparagement, what other actions are franchisees prohibited from taking against Cream under the non-disparagement clause?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
During and after the Term, you and your owners agree not 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 not to): (1) disparage or otherwise speak or write negatively, directly or indirectly, of us, our affiliates, any of our or our affiliates' directors, officers, employees, representatives or affiliates, current and former franchisees of us or our affiliates, the Jeni's® brand, the System, any Jeni's Ice Creams Scoop Shop, any business using the Marks, or any other brand concept operated, licensed, or franchised by us or our affiliates; or (2) take any other action which would, directly or indirectly, subject any of the foregoing to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact or injure the goodwill of the System or the Marks. Notwithstanding anything to the contrary, in no event will you be prohibited from providing truthful testimony in connection with a legal proceeding or governmental investigation. In addition, nothing in this Agreement shall prohibit you from reporting a suspected violation of law to the appropriate governmental agency or authority.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are restricted from taking actions that would subject Cream, its affiliates, or related parties to ridicule, scandal, reproach, scorn, or indignity. This extends to Cream's directors, officers, employees, representatives, current and former franchisees, the Jeni's® brand, the System, any Jeni's Ice Creams Scoop Shop, any business using the Marks, or any other brand concept operated, licensed, or franchised by Cream or its affiliates.
This clause also prohibits any actions that would negatively impact or injure the goodwill of the System or the Marks. However, the non-disparagement clause does not prevent franchisees from providing truthful testimony in legal proceedings or governmental investigations, nor does it prohibit reporting suspected violations of law to the appropriate governmental agency or authority.
In practical terms, this means a Cream franchisee must be cautious about any public statements or actions that could be perceived as harmful to the brand's reputation or the broader franchise system. While franchisees retain the right to participate in legal or governmental processes and report legal violations, they must otherwise avoid any behavior that could be construed as damaging to Cream's image or goodwill.