Can Cream engage in activities not expressly prohibited by the agreement in the Development Area?

According to Cream's 2025 Franchise Disclosure Document, Cream reserves the right to engage in activities not expressly prohibited by the Area Development Agreement, even within the franchisee's Development Area. This means that while the agreement grants the franchisee certain development rights within a specific geographic area, Cream retains broad authority to operate and authorize other businesses, including those that may compete with the franchisee's Cream Scoop Shops.

Cream and its affiliates can establish and operate other Cream Scoop Shops outside the Development Area under terms they deem appropriate. They can also establish other types of businesses, even those offering similar or competitive products, under different brand names within the Development Area. Cream can also establish businesses and distribution channels other than Cream Scoop Shops, including retail, wholesale, or online sales, within the franchisee's Development Area.

Furthermore, Cream can establish Cream Scoop Shops or other businesses using the Cream system in non-traditional venues like airports, hospitals, casinos, or parks, even within the Development Area. They can also conduct marketing and promotional activities, including those involving product giveaways, within the Development Area. Cream can also be acquired by or acquire other businesses, including those that compete with Cream Scoop Shops, and continue operating those businesses within the Development Area.

This reservation of rights has significant implications for prospective Cream franchisees. While franchisees are granted development rights and a degree of exclusivity within their Development Area, Cream retains considerable freedom to operate and authorize competing businesses and sales channels. This could impact the franchisee's market share and profitability. Franchisees should carefully consider these potential competitive pressures and evaluate the market conditions in their Development Area before investing in a Cream franchise.