Does the Cream franchise agreement acknowledge the franchisee's ability to earn a living despite the non-compete restrictions?

According to the 2025 Cream Franchise Disclosure Document, the franchise agreement acknowledges the franchisee's ability to earn a living despite the non-compete restrictions. The agreement states that franchisees possess general skills and abilities and have other opportunities to use these skills. Therefore, Cream believes that enforcing the non-compete covenants will not deprive franchisees of their personal goodwill or ability to earn a living. This acknowledgement is part of the broader non-compete agreement that restricts franchisees from engaging in competitive businesses under certain conditions after the termination or expiration of the franchise agreement.

The non-compete agreement lasts for two years, beginning on the date of termination or expiration of the agreement. During this period, franchisees and their owners are restricted from having a direct or indirect interest in a Competitive Business or performing services for one. These restrictions apply within the Development Area or within a 5-mile radius of any other Jeni's Ice Creams Scoop Shop. The agreement also clarifies that if a restricted person fails to comply with these obligations, the two-year restricted period will commence on the date they begin to comply, which may be the date a court order is entered to enforce the provision.

This acknowledgement is intended to provide some reassurance to potential franchisees that the non-compete clause is not designed to prevent them from making a living after leaving the Cream system. However, franchisees should carefully consider the scope and limitations of the non-compete agreement, including the geographic restrictions and the definition of a "Competitive Business," to fully understand its potential impact on their future opportunities. It is advisable to seek legal counsel to assess the enforceability of these provisions in their specific jurisdiction.