Can Cream conduct marketing events within the Development Area?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
an>The Development Rights may only be exercised for Jeni's Ice Creams Scoop Shops to be located in the Development Area. As long as you are in compliance with this Agreement and all Franchise Agreements (defined below) signed pursuant to this Agreement, and except as set forth in this Section 1.D, we will not, during the Term, operate or grant the right to anyone else to operate a Jeni's Ice Creams Scoop Shops within the Development Area, or grant Development Rights to anyone else to be exercised with your Development Area.
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;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream reserves the right to conduct marketing events within a franchisee's Development Area. Specifically, Cream can conduct marketing, advertising, and/or other promotional activities, events, and campaigns at any location in the world, including in the Development Area. These activities can include product giveaways and/or the offer and sale of products and services similar to and/or the same as those that Cream's Ice Creams Scoop Shops sell, and/or using Cream's trademarks.
This reservation of rights means that even though a franchisee is granted a Development Area, Cream retains significant control over marketing and promotional activities within that area. This could potentially lead to competition or market saturation within the franchisee's territory, as Cream could directly engage in marketing efforts that might impact the franchisee's business.
For a prospective Cream franchisee, this highlights the importance of understanding the scope of the Development Area and the potential for Cream to conduct its own marketing activities within that area. Franchisees should consider how Cream's marketing strategies might align or conflict with their own business plans and assess the potential impact on their revenue and market share. It is important to note that the franchisee will not be compensated for these activities.
Cream also retains the right 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 they deem appropriate. They can also establish and operate any other type of business, even those offering identical or similar products, under different trade names within the Development Area.