Does the Cream franchise agreement limit the location of customers for other businesses and distribution channels established by Cream within the Development Area?

According to the 2025 FDD, the Cream franchise agreement does not limit the location of customers for other businesses and distribution channels established by Cream within the Development Area. Cream reserves the right to 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 any online presence, wherever located or operating, including in a franchisee's Development Area. This applies regardless of the nature or location of the customers with whom such other businesses and distribution channels do business.

This means that Cream can operate or authorize others to operate businesses that might compete with a franchisee's scoop shop within their Development Area. These could include retail sales, wholesale distribution, or online sales, without any restrictions on where those businesses can find their customers. The businesses can also 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.

For a prospective Cream franchisee, this represents a significant risk. Cream retains the right to compete directly with its franchisees within their own territory through alternative distribution channels and other business ventures. This could dilute a franchisee's customer base and revenue potential, as Cream is not restricted from targeting the same customers through other means. Franchisees should carefully consider this lack of customer protection when evaluating the Cream franchise opportunity.