Can Cream elect to maintain multiple Brand Funds?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We may elect to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds.
We do not currently have any franchisees, and therefore we did not collect any Brand Fund Contributions or spend any amounts from any Brand Fund on media production, media placement, administration, or to solicit new franchise sales in our most recently completed fiscal year. Jeni's Ice Creams Scoop Shops owned by us or our affiliates will contribute to the Brand Fund at the same rate as franchise-owned Jeni's Ice Creams Scoop Shops.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to the 2025 FDD, Cream has the option to manage multiple Brand Funds. These funds can be differentiated based on geographic region or country, or Cream can consolidate or merge multiple Brand Funds. This provides Cream with flexibility in how it manages and allocates advertising and marketing resources.
For a prospective Cream franchisee, this means that the advertising and marketing strategies could be tailored to specific regions or markets. It also means that Cream could change the structure of the Brand Funds, which could impact how advertising fees are spent and the types of marketing initiatives undertaken. While the FDD states that Jeni's Ice Creams Scoop Shops owned by Cream or its affiliates will contribute to the Brand Fund at the same rate as franchise-owned shops, franchisees have no fiduciary duty regarding the Brand Fund.
Cream also has the ability to reduce or suspend Brand Fund contributions or operations, or even terminate and reinstate the Brand Fund. If the Brand Fund is terminated, Cream will spend the remaining balance in accordance with its System Standards. Franchisees should be aware that Cream does not provide financial statements for the Brand Fund, so there is limited transparency regarding how the funds are managed and spent.