Must a Cream franchisee process, retain, use, collect, and disclose Confidential Information in accordance with privacy policies?

According to the 2025 FDD, Cream franchisees must adhere to specific guidelines regarding the handling of confidential information. Franchisees are required to process, retain, use, collect, and disclose Cream's confidential information strictly in accordance with the privacy policies and system standards that Cream establishes and updates periodically. These policies and standards, along with Cream's instructions, dictate how franchisees must manage confidential data. This obligation extends to the franchisee's owners, their current and former spouses, immediate family members, officers, directors, employees, representatives, affiliates, successors, and assigns.

This requirement ensures that Cream's proprietary information is protected and handled consistently across all franchise locations. Unauthorized use or disclosure of confidential information is considered a breach of trust and can result in significant harm to Cream and its affiliates. Franchisees are responsible for any violations of these requirements by individuals to whom they provide confidential information, emphasizing the importance of training and oversight.

Cream also specifies that franchisees must adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of confidential information. These safeguards include establishing reasonable security and access measures, restricting disclosure to key personnel, and requiring individuals with access to confidential information to be bound by contractual obligations. Cream retains the right to conduct data security and privacy audits of the franchisee's shop and computer systems to ensure compliance with these requirements. This proactive approach helps Cream maintain control over its confidential information and mitigate potential risks associated with data breaches or misuse.