What are considered "Proprietary Products" that a Cream franchise must purchase?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Without in any way limiting the generality of our other rights in this Agreement, including the right to designate us or any affiliate of ours as an exclusive or approved supplier of any other products and services, you hereby expressly acknowledge and agree that you must purchase your entire inventory and supply of ice cream products and certain other ingredients ("Proprietary Products") exclusively from us, our designated affiliates, and/or required suppliers. You acknowledge that your purchase and use of such Proprietary Products is critical to the quality, distinctiveness, and uniformity of the System and the operation of Jeni's Ice Creams Scoop Shops. You further acknowledge that we would not have offered you the right to operate a Jeni's Ice Creams Scoop Shops if you had not agreed to use exclusively the Proprietary Products to operate your Shop, and to acquire such Proprietary Products exclusively from us and/or our designated affiliates or suppliers. Without in any way limiting the generality of our other rights in this Agreement, including the right to designate and control the products and services offered by your Shop, you agree not to offer or sell any ice cream, ice creamrelated retail products, or other ice cream products of any kind other than the Proprietary Products.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must purchase their entire inventory and supply of ice cream products and certain other ingredients, which are defined as "Proprietary Products," exclusively from Cream, its designated affiliates, and/or required suppliers. This requirement is critical to maintaining the quality, distinctiveness, and uniformity of the Cream system. Cream emphasizes that it would not offer the franchise opportunity without the franchisee's agreement to exclusively use these Proprietary Products.
Cream franchisees are prohibited from offering or selling any ice cream, ice cream-related retail products, or other ice cream products of any kind other than the designated Proprietary Products. This restriction ensures that all Cream locations maintain a consistent product offering and quality, which is a common practice in franchising to protect brand standards.
Cream also retains the right to designate itself or its affiliates as the exclusive or approved supplier of any other products and services. While the definition of Proprietary Products specifically mentions ice cream and certain ingredients, Cream has the broader authority to control the sourcing of other items used in the operation of the franchise. This allows Cream to manage the supply chain and potentially derive revenue or profits from franchisee purchases through various arrangements with suppliers, such as promotional allowances, rebates, and volume discounts.