Can the Cream Brand Fund be used to support public relations activities?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. We have established a brand promotion fund (the "Brand Fund") to administer certain advertising, marketing, and public relations programs for the System, the Jeni's® brand, and the promotion of Jeni's Ice Creams Scoop Shops. You must contribute to the Brand Fund the amount that we prescribe (the "Brand Fund Contribution"). Currently, the Brand Fund Contribution is 2% of Net Sales. We may modify the amount of the Brand Fund Contribution with 30 days prior notice to you, in an amount up to 4% of Net Sales.
We are not required to spend any amount on marketing within any particular market. 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
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to the 2025 FDD, Cream has established a Brand Fund to manage advertising, marketing, and public relations programs for the Cream system and the Jeni's brand. The Brand Fund can be used to support public relations activities. Cream maintains 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 with 30 days' notice, up to a maximum of 4% of Net Sales. The Brand Fund can be used to cover various expenses, including the creation of video, audio, and written materials, sponsorships, donations to charitable organizations, website maintenance, and administrative costs.
Cream does not have any fiduciary duty to franchisees regarding the Brand Fund's administration and will not provide franchisees with the Brand Fund's financial statements. Cream can also reduce, suspend, or terminate Brand Fund contributions and operations, and if terminated, the remaining balance will be spent according to Cream's System Standards. Cream may also manage multiple Brand Funds based on geographic region or consolidate existing funds.