Can Cream engage in activities not expressly prohibited by the Franchise Agreement within the Protected Territory?

According to Cream's 2025 Franchise Disclosure Document, Cream retains the right to engage in activities not expressly prohibited by the Franchise Agreement, even within a franchisee's Protected Territory. This means that unless an activity is specifically forbidden in the agreement, Cream can undertake it.

Specifically, Cream can establish and operate other businesses, including those that compete with Cream shops, under different trademarks within the Protected Territory. They can also establish alternative distribution channels, such as retail, wholesale, or online sales, within the Protected Territory, regardless of whether these channels compete with the franchisee's shop. Furthermore, Cream can operate Cream shops or similar businesses in non-traditional venues like airports, hospitals, casinos, or parks, even within the Protected Territory.

Cream also retains the right to conduct marketing and promotional activities, including product giveaways, within the Protected Territory. Additionally, Cream can be acquired by or acquire other businesses, including those that compete with Cream shops, and continue operating those businesses within the Protected Territory. This broad reservation of rights means that a Cream franchisee's Protected Territory offers limited protection against competition from Cream itself or entities affiliated with or acquired by Cream.