What documents must a Cream franchisee sign to protect Cream's interests in the Cream trademarks and system?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be required to notify us immediately of any apparent infringement or challenge to your use of the Marks or the System, or of any person's claim of any rights in the Marks or the System, and not to communicate with any person other than us, our affiliates and our and their attorneys, and your attorneys, regarding any infringement, challenge, or claim. The Franchise Agreement does not require us to take affirmative action when notified of these uses or claims. We and our affiliates may take the action we deem appropriate (including no action) and control exclusively any litigation or other legal or administrative proceeding arising from any infringement, challenge, or claim or otherwise concerning the Marks or the System. You must sign any documents and take any other action that we deem necessary or advisable to protect and maintain our and our affiliates' (as applicable) interests in the Marks and the System. Neither we nor our affiliates will have any obligation to defend the Marks or the System from valid claims of prior use or of lawful concurrent use by others.
We will reimburse you for all damages and expenses that you incur in defending any trademark infringement proceeding disputing your authorized use of the Marks under the Franchise Agreement if you have timely notified us of, and comply with our directions in responding to, the proceeding, and are in compliance with your Franchise Agreement. We are not required to assume your defense. If we or our affiliates choose to control the defense of any such proceeding, such person may choose its own legal counsel and other similar representatives, and it will not be liable to you or any of your affiliates or representatives for any costs or expenses incurred on the basis of any additional or separate legal counsel or similar representatives you or they retain.
Source: Item 13 — TRADEMARKS (FDD pages 39–40)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must sign any documents and take any action that Cream deems necessary or advisable to protect and maintain its interests in the trademarks and the Cream system. This requirement is triggered if there is any apparent infringement or challenge to the use of Cream's marks or system, or any claim of rights by another person. The franchisee is obligated to notify Cream immediately of any such issues.
This clause ensures that Cream can act swiftly and decisively to protect its brand and operational methods. By requiring franchisees to sign necessary documents, Cream retains control over legal and administrative proceedings related to trademark protection. This is a common practice in franchising, as the franchisor is responsible for maintaining the integrity and value of the brand across all franchise locations.
It is important to note that Cream is not obligated to take any affirmative action upon notification of infringement or claims. Cream has the sole discretion to decide whether or not to pursue legal action. Furthermore, neither Cream nor its affiliates are obligated to defend the marks or system from valid claims of prior use or lawful concurrent use by others. However, Cream will reimburse the franchisee for damages and expenses incurred in defending a trademark infringement proceeding if the franchisee has provided timely notification and complied with Cream's directions, and is in compliance with the Franchise Agreement.
Prospective franchisees should carefully consider this obligation, as it requires them to be proactive in identifying and reporting any potential trademark issues. While Cream may cover certain expenses related to defending against infringement claims, the franchisee must adhere to Cream's instructions and remain compliant with the franchise agreement to be eligible for reimbursement.