Does the definition of Confidential Information for Cream include knowledge of operating results and financial performance?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
estate reports; (2) training and operations materials and manuals; (3) the System Standards and other methods, formats, specifications, standards, systems, procedures, techniques, sales and marketing techniques, knowledge, and experience used in developing, promoting, and operating Jeni's Ice Creams Scoop Shops; (4) recipes, ingredient lists, nutrition facts, methods of preparation, and other information about products and menu items, including the existence or specifications of any seasonal or other unreleased products and menu items; (5) market research, promotional, marketing, and advertising programs for Jeni's Ice Creams Scoop Shops; (6) the identity or specifications of any of our required, approved, or designated suppliers, products, services; (7) any software or technology which is proprietary to the System, including any login credentials for, source code of, and data, reports, and other materials generated by, the software or similar technology; (8) knowledge of the operating results and financial performance of any Jeni's Ice Creams Scoop Shops, including your Jeni's Ice Creams Scoop Shops; (9) customer data, including personal information, analytic data, and opt-in/opt-out preferences; and (10) any other information designated as confidential or proprietary by us or our affiliates.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Confidential Information includes knowledge of operating results and financial performance. The FDD specifies that knowledge of the operating results and financial performance of any Jeni's Ice Creams Scoop Shops, including the franchisee's own shops, is considered confidential. This means that franchisees are obligated to protect this information and not disclose it to unauthorized parties.
Cream maintains ownership of all Confidential Information, granting franchisees only the right to use it as specified during the term of the franchise agreement. Franchisees acknowledge that this Confidential Information is proprietary and includes trade secrets, disclosed only under the condition that it is protected. Unauthorized use or disclosure is considered an unfair method of competition and a breach of trust, potentially causing irreparable harm to Cream.
Franchisees must adhere to specific guidelines for handling Confidential Information, including processing, retaining, using, collecting, and disclosing it strictly for the development and operation of their Cream shop. They must also comply with Cream's privacy policies and standards, and ensure that only employees and representatives who need the information have access to it. Franchisees are responsible for any violations of these requirements by individuals to whom they provide Confidential Information. This extends to preventing unauthorized copies and adopting safeguards to prevent unauthorized use or disclosure.
Cream may request franchisees to destroy or return any Confidential Information. However, information that is lawfully known to the public without violating any laws or obligations to Cream is not considered Confidential Information. Cream and its affiliates do not provide any warranties regarding the Confidential Information and bear no liability for any errors or omissions within it. This underscores the importance of franchisees understanding their obligations regarding Confidential Information to protect Cream's interests and avoid potential legal repercussions.