What constitutes a 'Competitive Business' according to the Cream Franchise Agreement?

According to Cream's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined within the context of non-competition agreements during the term of the franchise. Cream franchisees and their owners agree not to have a direct or indirect interest in a Competitive Business. This restriction extends to their spouses, immediate family members, owners, officers, directors, representatives, affiliates, successors, and assigns.

Specifically, a 'Competitive Business' is any business (excluding other Cream franchises) that operates or grants franchises or licenses to others. The business must involve ice cream, ice cream-based desserts or drinks, and/or other frozen desserts or drinks, or similar products. For a business to be considered competitive, these products must represent more than 10% of the total gross revenue.

However, there is an exception: owning less than 5% of a Competitive Business's stock does not violate the agreement if the stock or other ownership interests are publicly traded on a recognized United States stock exchange. This definition is crucial for prospective franchisees as it restricts their ability to engage with similar businesses during their franchise term, ensuring their focus remains on their Cream franchise.