What must a Cream franchisee do at Cream's request with the Confidential Information?

According to Cream's 2025 Franchise Disclosure Document, franchisees must either destroy or return any of the Confidential Information at Cream's request. Confidential Information includes non-public details about the Cream system and the operation of Jeni's Ice Creams Scoop Shops. This covers a wide array of sensitive data, such as site selection criteria, training materials, operational methods, recipes, marketing programs, supplier information, proprietary software, financial performance data, and customer data.

Cream emphasizes that all Confidential Information is exclusively owned by them or their affiliates and is proprietary to their system. Franchisees are obligated to handle this information carefully, using it only to the extent necessary for operating their shop in accordance with the Franchise Agreement. They must also adhere strictly to Cream's privacy policies and system standards, as well as any instructions provided by Cream or its representatives. Franchisees are responsible for ensuring that their employees and representatives who have access to Confidential Information also comply with these requirements.

In addition to destroying or returning the information upon request, franchisees must also take proactive measures to protect the Confidential Information. This includes not making unauthorized copies, implementing administrative, physical, and technical safeguards to prevent unauthorized use or disclosure, restricting disclosure to key personnel, and ensuring that individuals with access to the information are bound by contractual obligations to protect it. Cream may also designate or approve the form of confidentiality agreement that franchisees must use.

It is important to note that information already lawfully known to the public without any breach of obligation to Cream is not considered Confidential Information. This exception acknowledges that franchisees are not required to protect information that is already in the public domain. However, franchisees should be aware that the burden of proof would likely fall on them to demonstrate that specific information meets this exception.