What is a Cream franchisee prohibited from doing with Cream's Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All Confidential Information is exclusively owned by us or our affiliates and is proprietary to our System (other than certain personal information relating to your employees and personnel, and/or certain other data that we do not have access to or are otherwise designated or restricted by us). You and your owners will (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): (i) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of your Shop in accordance with the Franchise Agreement; (ii) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and system standards we establish, and our and our representative's instructions; (iii) 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 operating your Shop in accordance with the Franchise Agreement (you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information); (iv) not make unauthorized copies of any of our Confidential Information; (v) adopt and maintain administrative, physical and technical safeguards to prevent unauthorized use or disclosure of any of our Confidential Information, including by establishing reasonable security and access
measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve our rights and controls in such Confidential Information, in each case that are no less protective or beneficial to us than the terms of the Franchise Agreement (and we may designate or approve the form of confidentiality agreement that you will use); and (vi) at our request, destroy or return any of the Confidential Information. Confidential Information does not include information, knowledge, or know-how, which is lawfully known to the public without violation of applicable law or an obligation to us or our affiliates.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 40–42)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees face several restrictions regarding the use and handling of the franchisor's Confidential Information. Cream defines Confidential Information broadly, encompassing non-public details about the System and the operation of Jeni's Ice Creams Scoop Shops. This includes site selection criteria, training materials, operational methods, recipes, marketing programs, supplier information, proprietary software, financial performance data, and customer data. Franchisees must treat this information as highly sensitive and protected.
Cream strictly limits how franchisees can use, retain, collect, and disclose Confidential Information. Franchisees are permitted to use the information only to the extent necessary for developing and operating their Shop in accordance with the Franchise Agreement, and they must adhere to Cream's privacy policies and system standards. A significant restriction is that franchisees cannot disclose, sell, distribute, or trade Cream's Confidential Information to any person, except for employees and representatives who need the information to assist in operating the Shop, and even then, the franchisee is responsible for any violations by those individuals.
Furthermore, franchisees are prohibited from making unauthorized copies of Confidential Information and must implement and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure. These safeguards include establishing reasonable security and access measures and ensuring that anyone with access to the information is bound by contractual obligations to protect it. Cream may also designate or approve the form of confidentiality agreement that franchisees must use. At Cream's request, franchisees must destroy or return any Confidential Information. The only exception to these restrictions is for information that is already lawfully known to the public without any violation of applicable law or obligation to Cream.