Who has control over the programs and services administered by the Cream Brand Fund?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have exclusive control over all programs and services administered by the Brand Fund, including over the creative concepts, materials, and campaigns and their geographic market, media placement and allocation. The Brand Fund may pay for preparing and producing video, audio, and written materials and electronic media; sponsoring, supporting, and/or donating proceeds to one or more charitable, social, or community organizations or initiatives and/or hosting campaigns, initiatives, and/or events for the foregoing; developing, implementing, and maintaining any website, domain name, email
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream retains exclusive control over the Brand Fund. This means Cream has the authority to determine the creative concepts, materials, campaigns, geographic markets, media placement, and allocation of resources for all programs and services administered by the Brand Fund. Cream is not obligated to spend any specific amount on marketing within any particular market.
As a prospective franchisee, this indicates that while you are required to contribute to the Brand Fund, you have limited to no direct influence over how those funds are spent. Cream decides how the money is used to promote the Cream brand and Jeni's Ice Creams Scoop Shops. This includes the discretion to use the Brand Fund for various advertising and promotional activities, such as preparing video and audio materials, supporting charitable organizations, and maintaining websites.
Cream also has the ability to modify the Brand Fund Contribution amount with 30 days' notice, up to a maximum of 4% of Net Sales. Cream may also reduce or suspend Brand Fund contributions or terminate the Brand Fund entirely, spending any remaining balance according to their System Standards. Cream does not provide financial statements of the Brand Fund to franchisees and has no fiduciary duty to franchisees regarding the Brand Fund's administration. This gives Cream significant latitude in managing the Brand Fund and its resources.
This level of control is relatively common in franchising, where the franchisor typically manages marketing and advertising efforts to maintain brand consistency and maximize impact. However, it's important for a prospective Cream franchisee to understand the implications of this arrangement, including the lack of direct input into how their Brand Fund contributions are spent and the potential for changes in the contribution amount.