What is considered 'Restricted Data' and how does it differ from other Confidential Information for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All Confidential Information will be owned by us or our affiliates (other than personally identifiable information relating to the employees, officers, contractors, owners or other personnel of you, your affiliates, or your Jeni's Ice Creams Scoop Shop, and/or such other personally identifiable information designated by us from time to time). You acknowledge and agree that: (1) you will not acquire any interest in any of our Confidential Information, other than the right to use it as we specify under this Agreement or the Franchise Agreements you sign, in each case in accordance with the terms of such agreement; and (2) our Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you will protect it.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream defines 'Confidential Information' broadly, encompassing various aspects of their business operations. This includes site selection criteria, training materials, system standards, recipes, market research, supplier information, proprietary software, operating results, customer data, and any other information designated as confidential by Cream. All of this Confidential Information is owned by Cream or its affiliates. Franchisees are granted a limited right to use this information only as specified in their Franchise Agreement.
However, 'Restricted Data' is not explicitly defined within the provided excerpts of the 2025 FDD. The document mentions that Confidential Information excludes 'Restricted Data, as defined in Section 8.K' or 'personally identifiable information relating to the employees, officers, contractors, owners or other personnel of you, your affiliates, or your Jeni's Ice Creams Scoop Shop, and/or such other personally identifiable information designated by us from time to time'. This suggests that 'Restricted Data' pertains to personally identifiable information of the franchisee's personnel, which is treated differently from Cream's general Confidential Information.
The distinction implies that while Cream retains ownership of most Confidential Information, the franchisee maintains control over the personally identifiable information of their own personnel. This distinction is important because it likely affects how the franchisee can use, disclose, and protect this specific type of information under privacy laws and regulations. A prospective franchisee should seek clarification from Cream regarding the precise definition of 'Restricted Data' and the specific obligations and rights associated with it to ensure compliance and protect the privacy of their personnel.