Does the Cream franchise agreement specify a minimum level of protection I must provide for confidential information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All Confidential Information will be owned by us or our affiliates (other than personally identifiable information relating to the employees, officers, contractors, owners or other personnel of you, your affiliates, or your Jeni's Ice Creams Scoop Shop, and/or such other personally identifiable information designated by us from time to time). You acknowledge and agree that: (1) you will not acquire any interest in any of our Confidential Information, other than the right to use it as we specify under this Agreement or the Franchise Agreements you sign, in each case in accordance with the terms of such agreement; and (2) our Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you will protect it. You acknowledge that any unauthorized use or disclosure of our Confidential Information would be an unfair method of competition and a breach of trust and confidence and will result in irreparable harm to us and/or our affiliates. You and your owners agree to (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):
- (a) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for exercise of your Development Rights in accordance with this Agreement, and/or the operation of Jeni's Ice Creams Scoop Shops under the respective Franchise Agreements, and not for any other purpose of any kind;
- (b) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and standards we establish from time to time, and our and our representative's instructions;
- (c) 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 exercising your Development Rights in accordance with this Agreement, and/or operating Jeni's Ice Creams Scoop Shops in accordance with Franchise Agreements with us; and you agree that you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information;
- (d) not make unauthorized copies of any of our Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are required to protect the franchisor's confidential information. Cream states that all confidential information is owned by them or their affiliates. As a franchisee, you won't acquire any interest in Cream's confidential information, other than the right to use it as specified in the Franchise Agreement. Cream considers its confidential information proprietary and includes trade secrets, which are disclosed to you only if you agree to protect it. Unauthorized use or disclosure of this information is considered an unfair method of competition and a breach of trust, which could cause irreparable harm to Cream and its affiliates.
The franchise agreement outlines specific measures you and your owners must take to protect Cream's confidential information. These include processing, retaining, using, collecting, and disclosing confidential information only to the extent necessary for exercising your Development Rights and operating Jeni's Ice Creams Scoop Shops, in accordance with the agreement and Cream's privacy policies and standards. You must also keep the information confidential and not disclose, sell, distribute, or trade it to anyone except employees and representatives who need to know it for assisting you in exercising your Development Rights or operating the Scoop Shops. You are responsible for any violation of this requirement by anyone you provide the confidential information to. Additionally, you are prohibited from making unauthorized copies of Cream's confidential information.
These stipulations mean that as a Cream franchisee, you have a significant responsibility to safeguard the franchisor's proprietary information. This includes not only your own actions but also ensuring that your employees, representatives, and even family members who have access to the information adhere to these confidentiality requirements. Failure to comply with these requirements could lead to legal repercussions and damage the relationship with the franchisor. Prospective franchisees should carefully review these obligations and ensure they have the resources and systems in place to adequately protect Cream's confidential information.