Must a Cream franchisee comply with the franchisor's website privacy policy?
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;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees must adhere to the franchisor's privacy policies and standards. Specifically, franchisees are required to process, retain, use, collect, and disclose confidential information strictly in accordance with the privacy policies and standards that Cream establishes and according to the franchisor's instructions. This obligation ensures that franchisees handle data consistently with the franchisor's requirements.
This requirement has significant implications for a prospective Cream franchisee. It means that the franchisee must implement and maintain systems and procedures to comply with Cream's privacy policies, which may include training employees, updating software, and regularly reviewing data handling practices. Failure to comply with these policies could result in a breach of the franchise agreement and potential penalties.
In the franchise industry, it is common for franchisors to set privacy and data security standards to protect customer information and maintain brand reputation. Cream's approach aligns with this practice, ensuring that all franchisees handle confidential information in a consistent and secure manner. A prospective franchisee should carefully review Cream's privacy policies and standards to understand their obligations and ensure they can meet these requirements before investing in the franchise.