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Does compliance with all agreements affect my Protected Territory with Cream?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

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").

Source: Item 12 — TERRITORY (FDD pages 35–39)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, your compliance with all agreements significantly affects your Protected Territory. Specifically, if you are in compliance with your Franchise Agreement and all other agreements with Cream and its affiliates, neither Cream nor its affiliates will establish or operate or authorize any other person to establish or operate a Jeni's Ice Creams Scoop Shop in your Protected Territory. This protection is subject to certain exclusions and limitations detailed in the FDD.

However, it's important to note that Cream retains several rights, even within your Protected Territory. Cream can establish other types of businesses that offer similar or competitive products under different trademarks. They can also establish alternative distribution channels, such as retail sales or digital presence, even if they compete with your Cream shop. Furthermore, Cream can operate Jeni's Ice Creams Scoop Shops in non-traditional venues like airports or entertainment centers within your Protected Territory.

For franchisees entering into an Area Development Agreement, similar conditions apply. As long as you comply with the Area Development Agreement and all related Franchise Agreements, Cream will not establish or authorize other Jeni's Ice Creams Scoop Shops within your Development Area. However, this protection does not extend to other types of businesses or alternative distribution channels that Cream might establish, even if they compete with your Cream shops. Therefore, while compliance ensures protection from direct franchise competition within your territory, Cream retains considerable freedom to operate other businesses and channels that may compete with your franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.