What must a Cream franchisee do with Confidential Information after termination?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement you and your owners must immediately: (1) cease conducting the business granted hereunder or holding yourself out to the public as being a developer of Jeni's Ice Creams Scoop Shops except as permitted under Franchise Agreements; (2) return to us or destroy (as we require) any and all Confidential Information (other than as used by you in connection with the operation of any Jeni's Ice Creams Scoop Shop under a Franchise Agreement with us); (3) comply with all other standards we establish from time to time (and all applicable laws) in connection with the wind-down of your business contemplated by this Agreement; and (4) without limiting any other rights or remedies to which we may be entitled, you must pay all amounts owing to us pursuant to this Agreement up to the date of termination.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee and their owners must immediately return to Cream or destroy any and all Confidential Information, as required by Cream. This obligation does not apply to Confidential Information used in connection with the operation of any Jeni's Ice Creams Scoop Shop under a Franchise Agreement with Cream.
This requirement ensures that Cream's proprietary information remains protected even after a franchise relationship ends. This is a standard practice in franchising, as the franchisor's confidential information, including trade secrets and operating procedures, is crucial to the brand's success and must not be used by former franchisees to compete unfairly.
The franchisee must comply with all other System Standards established by Cream and all applicable laws related to winding down their business. This includes proper disposal of Personal Information in any form, whether in the possession of the franchisee or their employees. Franchisees must also provide evidence satisfactory to Cream that they have complied with these obligations.
These obligations continue in full force and effect after the expiration or termination of the agreement, including all obligations relating to confidentiality and information security. This means that even after the franchise agreement ends, the franchisee remains responsible for protecting Cream's Confidential Information indefinitely.