factual

Does the Cream franchise agreement grant Cream power of attorney to effect de-identification?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon termination or expiration of this Agreement, you and your owners must immediately:

  • (1) close your Shop for business to customers and cease to directly or indirectly sell any products and services of any kind and in any manner from your Shop and/or using the Marks, unless we direct you otherwise in connection with our exercise of our option to purchase pursuant to Section 15.D;
  • (2) cease to directly or indirectly use any Mark, any colorable imitation of a Mark, other indicia of a Jeni's Ice Creams Scoop Shop, or any trade name, trademark, service mark, or other commercial symbol that indicates or suggests a connection or association with us or the System, in any manner or for any purpose (except in connection with other Jeni's Ice Creams Scoop Shops you operate in compliance with the terms of a valid Franchise Agreement with us);
  • (3) cease to directly or indirectly identify yourself or your business as a current or former Jeni's Ice Creams Scoop Shop or as one of our current or former franchise owners (except in connection with other Jeni's Ice Creams Scoop Shops you operate in compliance with the terms of a valid Franchise Agreement with us) and take the action required to cancel or assign all fictitious or assumed name or equivalent registrations relating to your use of any Mark;
  • (4) if we do not exercise our option to purchase your Shop under Section 15.D below, promptly and at your own expense, make the alterations we specify to distinguish your Shop clearly from its former appearance and from other Jeni's Ice Creams Scoop Shops, including by removing all materials and signage bearing our Marks and removing from both the interior and exterior of the Premises all materials and components of our trade dress as we determine to be necessary in order to prevent public confusion and in order to comply with the non-competition provisions set forth in Section 15.C;
  • (5) cease using and, at our direction, either disable or transfer, assign, or otherwise convey to us full control of all Contact Information and Digital Presences that you used to operate your Shop or that displays any of the Marks or any reference to the franchise system (provided that all liabilities and obligations arising from any such Contact Information or Digital Presence prior to the date of the transfer, assignment, or conveyance to us will remain your sole responsibility in all respects, and any costs we incur in connection therewith will be indemnifiable under Section 16.D);
  • (6) return to us or destroy (as we require) all items, forms, and materials containing any Mark or otherwise identifying or relating to Jeni's Ice Creams Scoop Shops, and any and all Confidential Information (including the Brand Manual and any and all customer data or other information from your Computer System);
  • (7) comply with all other System Standards we establish from time to time (and all applicable laws) in connection with the closure and de-identification of your Shop, including as it relates to disposing of Personal Information, in any form, in your possession or the possession of any of your employees; and
    • (8) give us evidence satisfactory to us of your compliance with these obligations.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

Based on the 2025 FDD, the Cream franchise agreement outlines specific de-identification procedures that a franchisee must follow upon termination or expiration of the agreement. However, the FDD does not explicitly state that Cream is granted power of attorney to effect de-identification on behalf of the franchisee.

Instead, the franchisee is obligated to take several actions to de-identify the former Cream location. These actions include closing the shop, ceasing the use of Cream's marks and trade names, and taking steps to ensure the shop is clearly distinguished from other Cream locations. The franchisee is also responsible for transferring control of digital presences and contact information to Cream, and for complying with all system standards related to de-identification, including the disposal of personal information.

While the franchisee is required to comply with Cream's directions and provide evidence of compliance, the agreement does not appear to grant Cream the power of attorney to act directly on the franchisee's behalf for de-identification purposes. A prospective franchisee should clarify with Cream whether there are any circumstances under which Cream might take direct action to de-identify a location and what legal mechanisms would govern such actions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.