Does a Cream franchisee acquire any ownership interest in the 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):
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees do not acquire any ownership interest in Cream's Confidential Information. Cream or its affiliates retain ownership of all Confidential Information, except for personally identifiable information relating to the franchisee's employees, officers, contractors, owners, or other personnel, and/or such other personally identifiable information designated by Cream from time to time.
This means that while franchisees are granted the right to use Cream's Confidential Information as specified in the Franchise Agreement, they do not own it. This right to use the information is limited to the operation of their Jeni's Ice Creams Scoop Shop during the term of the agreement. Franchisees must protect the confidentiality of the information and can only use it as permitted by Cream.
Unauthorized use or disclosure of Cream's Confidential Information is considered a breach of trust and confidence, potentially leading to irreparable harm to Cream and its affiliates. Franchisees are responsible for ensuring that their employees and representatives who have access to the Confidential Information also adhere to these confidentiality requirements. This includes preventing unauthorized copying, disclosure, or use of the information for any purpose other than operating the Cream franchise.