Can Cream change the terms and conditions for activities within the Development Area without regard to proximity to the franchisee?
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 retains significant rights within and outside a franchisee's development area. Cream reserves all rights not explicitly granted to the franchisee in the Area Development Agreement, and can undertake activities without compensating the franchisee.
Specifically, Cream can establish and operate other Jeni's Ice Creams Scoop Shops outside the Development Area under any terms and conditions they deem appropriate. Cream can also establish and operate other types of businesses, even those that compete with Jeni's Ice Creams Scoop Shops, within the Development Area, as long as they operate under different trade names and trademarks.
Cream can also establish other distribution channels, including retail, wholesale, and online sales, within the franchisee's Development Area. These activities can be pursued without regard to the proximity to the franchisee's Development Area and on terms and conditions that Cream considers appropriate. This means that Cream has broad discretion to operate and authorize others to operate businesses that may compete with the franchisee, even within the area designated for the franchisee's development.