Can Cream establish businesses and distribution channels that use trademarks similar to Jeni's within the Development Area?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) establish, and allow others to establish, businesses and distribution channels other than a Jeni's Ice Creams Scoop Shop (including, selling products at retail, wholesale, or through the internet, catalog sales, telemarketing, direct marketing, e-commerce, product lines in other businesses, or through any other digital presence), wherever located or operating, including in your Development Area, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that operate under trade names, trademarks, service marks, or commercial symbols that are similar to, the same, or competitive with the Marks, and/or that sell products or services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, including the offer and sale of Jeni's® -branded ice cream or products at third-party businesses;
(4) establish and operate, and allow others to establish and operate, any Jeni's Ice Creams Scoop Shop, or other business using the System, and/or offering and selling any of the products or services that are similar to, the same, or competitive with those products or services offered by Jeni's Ice Creams Scoop Shops, at or through any non-traditional venues, including temporary or seasonal facilities or businesses operated within any larger venue or closed market such as an airport, hospital or medical center, casino or gaming center, convention or business center, fairground, state, local, or national park, hotel or resort, military base, transportation or transit center, university stadium or entertainment center, at any location in the world, including in the Development Area;
(5) conduct marketing, advertising, and/or other promotional activities, events, and campaigns, at any location in the world, including in the Development Area, including events, activities, and campaigns that involve product giveaways and/or the offer and sale of products and services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, and/or using the Marks;
Source: Item 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream retains the right to establish businesses and distribution channels, other than Jeni's Ice Creams Scoop Shops, within a franchisee's Development Area, even if those businesses use trademarks similar to Jeni's. This includes selling products at retail, wholesale, or online. Cream can do this regardless of the location or nature of the customers these businesses serve.
This means that a Cream franchisee's Development Area is not protected from competition from businesses owned or authorized by Cream that offer similar products or services under different brand names. Cream can also establish Jeni's Ice Creams Scoop Shops or other businesses using the Cream system in non-traditional venues like airports, hospitals, or entertainment centers within the Development Area.
Furthermore, Cream is allowed to conduct marketing and promotional activities, including product giveaways, within the Development Area, even if these activities involve products similar to those sold in Jeni's Ice Creams Scoop Shops. Cream also has the right to acquire or be acquired by other businesses, including those that compete with Jeni's Ice Creams Scoop Shops, within the Development Area. These rights are retained by Cream and its affiliates, and Cream is not required to compensate franchisees for exercising these rights. A potential franchisee should consider the implications of these retained rights on their potential market share and profitability within their Development Area or Protected Territory.