Can the Cream Brand Fund be used to pay for developing, implementing, and maintaining any other digital presence?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have exclusive control over all programs and services administered by the Brand Fund, including over the creative concepts, materials, and campaigns and their geographic market, media placement and allocation. The Brand Fund may pay for preparing and producing video, audio, and written materials and electronic media; sponsoring, supporting, and/or donating proceeds to one or more charitable, social, or community organizations or initiatives and/or hosting campaigns, initiatives, and/or events for the foregoing; developing, implementing, and maintaining any website, domain name, email address, social media account, username, other digital presence or presence on any electronic, virtual, or digital medium of any kind (each a "Digital Presence") or other software or applications; administering national, regional, digital, or local advertising and marketing campaigns and/or programs; using advertising, promotion, and marketing agencies and other advisors to provide assistance; supporting public relations, market research, and other advertising, promotion, and marketing strategy or implementation activities; and/or any other expenditures that are directly or indirectly related to promoting the Marks, the System, the brand, and/or Jeni's Ice Creams Scoop Shops. We may also use the Brand Fund to pay for the Brand Fund's administrative and overhead costs, including the reasonable salaries and benefits of personnel who manage and administer the Brand Fund, and any other expenses that we or our affiliates incur that are related to administering or directing the Brand Fund and its programs. We may modify Brand Fund expenditures at any time.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Brand Fund can be used to cover the costs of developing, implementing, and maintaining any website, domain name, or email address. It can also be used for social media accounts, usernames, and other forms of digital presence. This fund is used to administer advertising, marketing, and public relations programs for the Cream system and brand, as well as to promote Jeni's Ice Creams Scoop Shops. Cream has exclusive control over the Brand Fund's programs and services, including creative concepts, materials, campaigns, geographic market, media placement, and allocation.
Cream franchisees are required to contribute to the Brand Fund, with the current contribution set at 2% of Net Sales. Cream retains the right to modify this contribution amount with 30 days' notice, up to a maximum of 4% of Net Sales. The Brand Fund is used for various promotional activities, including producing video, audio, and written materials, sponsoring charitable initiatives, and hosting events. It also covers the administrative and overhead costs of managing the Brand Fund, including salaries and benefits for personnel involved in its administration.
Cream does not provide franchisees with the financial statements of the Brand Fund for review and has no fiduciary obligation to franchisees regarding the fund's administration. Cream can reduce, suspend, or terminate the Brand Fund at any time, and if terminated, the remaining balance will be spent according to Cream's System Standards. Cream may also maintain multiple Brand Funds, differentiated by geographic region or consolidate existing funds. Cream also has the right to establish and develop digital presences to advertise and promote Jeni's Ice Creams Scoop Shops.