Who exclusively owns the Confidential Information related to the Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
n/opt-out preferences; and (x) any other information designated as confidential or proprietary by us.
All Confidential Information is exclusively owned by us or our affiliates and is proprietary to our System (other than certain personal information relating to your employees and personnel, and/or certain other data that we do not have access to or are otherwise designated or restricted by us). You and your owners will (and to use each of your best efforts to cause each of your respective current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors and assigns to): (i) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of your Shop in accordance with the Franchise Agreement; (ii) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and system standards we establish, and our and our representative's instructions; (iii) keep confidential and not disclose, sell, distribute, or trade our Confidential Information to any person other than those of your employees and representatives who need to know such Confidential Information for the purpose of assisting you in operating your Shop in accordance with the Franchise Agreement (you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information); (iv) not make unauthorized copies of any of our Confidential Information; (v) adopt and maintain administrative, physical and technical safeguards to prevent unauthorized use or disclosure of any of our Confidential Information, including by establishing reasonable security and access
measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve our rights and controls in such Confidential Information, in each case that are no less protective or beneficial to us than the terms of the Franchise Agreement (and we may designate or approve the form of confidentiality agreement that you will use); and (vi) at our request, destroy or return any of the Confidential Information. Confidential Information does not include information, knowledge, or know-how, which is lawfully known to the public without violation of applicable law or an obligation to us or our affiliates.
For any "personally identifiable information", you must also: (i) process, retain, use, collect, and disclose all personal information only in strict accordance with all applicable laws, regulations, orders, the guidance and codes of practice issued by industry or regulatory agencies, and the privacy policies and terms and conditions of any applicable Digital Presence; (ii) assist us with meeting our compliance obligations under all applicable laws, regulations, and orders relating to personal information, including the guidance and codes of practice issued by industry or regulatory agencies; and (iii) promptly notify us of any communication or request from any customer or other person to access, correct, delete, opt-out of, or limit activities relating to any personal information.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 40–42)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream or its affiliates exclusively own all Confidential Information related to the Cream franchise system. This information is considered proprietary. There are exceptions for certain personal information relating to the franchisee's employees and personnel, and/or certain other data that Cream does not have access to or are otherwise designated or restricted by Cream.
This means that as a Cream franchisee, you are granted limited use of this Confidential Information strictly for operating your Cream shop according to the franchise agreement. You must protect this information and prevent unauthorized disclosure. This obligation extends to your employees, representatives, and even former personnel who may have had access to the information. Cream also requires franchisees to adhere to specific privacy policies and system standards to safeguard Confidential Information.
Cream also stipulates that any improvements, developments, or modifications to the franchise system, whether created by the franchisee or Cream, automatically become the property of Cream and its affiliates. This includes new operational systems or materials. Franchisees must assign any interest in such intellectual property to Cream. This clause ensures that Cream maintains control over the evolution and standardization of its franchise system, but it also means that franchisees may not be able to directly benefit from innovations they develop within their own Cream locations.