What competition might I face as a Cream franchisee, according to the Franchise Agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ain sales volume, market penetration, or other contingency.
Franchise Agreement
You will not receive an exclusive territory under the Franchise Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, as long as you are in compliance with your Franchise Agreement and all other agreements with us and our affiliates, and subject to the exclusions and limitations described below, neither we nor any of our affiliates will establish or operate or authorize any other person to establish or operate a Jeni's Ice Creams Scoop Shop in the geographic area designated in your Franchise Agreement (your "Protected Territory").
If you have not selected a site for your Shop as of the effective date of the Franchise Agreement, we will identify the Protected Territory once you sign your approved Lease. If a Protected Territory is not designated in your Franchise Agreement, or until such time that one is, you have not been awarded any Protected Territory. If we identify a site selection area in your Franchise Agreement, that area is strictly to limit your site selection activities. You will receive no territorial protection of any kind in the site selection area, or any other geographic area, other than your Protected Territory.
Other than your Protected Territory, if any, you have no territorial protection and we and our affiliates retain all rights to conduct business activities of any kind in any location, including the right to:
(1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the Marks and the System, at any location outside the Protected Territory, 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 Marks, anywhere in the world, including in the Protected Territory;
(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 Digital Presence), wherever located or operating, including in your Protected Territory, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that operate under trade names, trademarks, service marks, or commercial symbols that are similar to, the same, or competitive with the Marks, and/or that sell products or services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, including the offer and sale of Jeni's® -branded ice cream or products at third-party businesses;
(4) establish and operate, and allow others to establish and operate, any Jeni's Ice Creams Scoop Shop, or other business using the Marks and/or the System, and/or offering and selling any of the products or services that are similar to, the same, or competitive with those products or services offered by Jeni's Ice Creams Scoop Shop, at or through any non-traditional venues, including, temporary or seasonal facilities or business operated within any larger venue or closed market such as an airport, hospital, or medical center, casino or gaming center, convention or business center, fairground, state, local, or national park, hotel or resort, military base, transportation or transit center, university, stadium, or entertainment center, at any location in the world, including in the Protected Territory;
(5) conduct marketing, advertising, and/or other promotional activities, events, and campaigns, at any location in the world, including in the Protected Territory, including events, activities, and campaigns that involve product giveaways and/or the offer and sale of products and services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, and/or using the Marks;
(6) be acquired by or acquire (regardless of the form of transaction(s)), any other business, including businesses that operate or allow others to establish and operate businesses similar to, the same, or competitive with Jeni's Ice Creams Scoop Shops, at any location in the world, including in the Protected Territory (and in the event of such an acquisition, we and/or the acquirer and its affiliates will have the right to continue to establish and operate, and authorize others to establish and operate, such businesses, at any location in the world, including in the Protected Territory); and
(7) engage in all other activities not expressly prohibited by the Franchise Agreement, at any location in the world, including in the Protected Territory.
We may offer and sell and grant others the right to offer and sell goods and services to customers located anywhere, including in your Protected Territory. There are no limitations on your ability to solicit customers in any location. However, you may not engage in any promotional or similar activities, whether directly or indirectly, through any Digital Presence.
Source: Item 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, as a franchisee, you may face competition from several sources. The Franchise Agreement does not grant an exclusive territory, meaning you could encounter competition from other Cream franchisees, outlets owned by Cream itself, or other distribution channels or competitive brands that Cream controls. However, if you comply with the Franchise Agreement and related agreements, Cream and its affiliates will not establish or operate a Cream Scoop Shop, or authorize others to do so, within your Protected Territory.
Outside of your Protected Territory, Cream retains the right to conduct business activities of any kind. This includes establishing and operating other Cream Scoop Shops, or allowing others to do so, under terms and conditions Cream deems appropriate. Cream can also establish and operate other types of businesses, even those offering products and services identical, similar, or competitive with Cream Scoop Shops, under different trade names and trademarks, even within your Protected Territory.
Cream also retains the right to establish other distribution channels, such as retail sales, wholesale, internet sales, and product lines in other businesses, regardless of location, including within your Protected Territory. They can also establish Cream Scoop Shops or other businesses using the Cream system in non-traditional venues like airports, hospitals, casinos, parks, hotels, universities, and stadiums, even within your Protected Territory. Cream can also conduct marketing and promotional activities, including product giveaways, in any location, including your Protected Territory.
Cream and its affiliates can also be acquired by or acquire other businesses, including those that are competitive with Cream Scoop Shops, at any location, including your Protected Territory. In the event of such an acquisition, Cream or the acquiring company can continue to operate or authorize the operation of these competitive businesses, even within your Protected Territory. Cream is not required to pay you if they exercise any of these rights.