Besides the franchisee, who else does Cream reserve rights for within the Development Area?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
For the avoidance of doubt, we reserve for ourselves and our affiliates all rights not expressly granted to you in this Agreement and the right to do all things that we do not expressly agree in this Agreement not to do, in each case, without compensation to you, without regard to proximity to your Development Area, and on such terms and conditions as we deem appropriate. For example, and without limitation, we and our affiliates may, ourselves or through authorized third parties:
- (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 any online 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, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream reserves specific rights for itself and its affiliates within the Development Area granted to the franchisee. While Cream assures that, as long as the franchisee adheres to the Area Development Agreement and Franchise Agreements, it will not operate or allow others to operate a Jeni's Ice Creams Scoop Shop within the Development Area, this protection has exceptions. Cream retains the right to do anything not explicitly prohibited in the agreement without compensating the franchisee.
Specifically, Cream and its affiliates can establish and operate other types of businesses, including those offering similar or competitive products, under different brand names and trademarks within the Development Area. They can also establish other distribution channels, such as retail, wholesale, or online sales, within the Development Area, regardless of the location or nature of the customers.
This reservation of rights means that a Cream franchisee's Development Area is not entirely exclusive. Cream retains considerable freedom to operate alternative businesses and sales channels, potentially creating competition for the franchisee within their designated area. Prospective franchisees should carefully consider this lack of exclusivity and its potential impact on their business before investing in a Cream Area Development Agreement.