Are Cream franchisees allowed to speak negatively about Jeni's *®* brand under the non-disparagement clause?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
During and after the Term, you and your owners agree not 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 not to) disparage or otherwise speak or write negatively, directly or indirectly, of us, our affiliates, any of our or our affiliates' directors, officers, employees, representatives or affiliates, current and former franchisees or developers of us or our affiliates, the Jeni's ® brand, the System, any Jeni's Ice Creams Scoop Shop, any other brand or service-marked or trademarked concept operated or franchised by us or our affiliates, or take any other action which would, directly or indirectly, subject any of the foregoing to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact or injure the goodwill of the System. Notwithstanding anything to the contrary, in no event will you be prohibited from providing truthful testimony in connection with a legal proceeding or governmental investigation. In addition, nothing in this Agreement shall prohibit you from reporting a suspected violation of law to the appropriate governmental agency or authority.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are restricted from disparaging the Jeni's® brand. The non-disparagement clause in the franchise agreement prohibits franchisees, their owners, and related parties from speaking or writing negatively, directly or indirectly, about Cream, its affiliates, directors, officers, employees, representatives, current and former franchisees, the Jeni's® brand, the System, Jeni's Ice Creams Scoop Shops, businesses using Cream's marks, or any other brand concept operated, licensed, or franchised by Cream or its affiliates.
This restriction applies both during and after the term of the franchise agreement. It extends not only to the franchisee but also to their current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns. Franchisees are expected to use their best efforts to ensure these parties also comply with the non-disparagement clause.
However, there are exceptions to this clause. The agreement does not prohibit franchisees from providing truthful testimony in connection with a legal proceeding or governmental investigation. Additionally, franchisees are not prohibited from reporting a suspected violation of law to the appropriate governmental agency or authority. This ensures that franchisees can fulfill legal obligations and report potential wrongdoing without violating the non-disparagement clause.