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How does the Cream franchisee's obligation to adhere to system standards (Item 8) relate to the franchisor's trademarks (Item 13)?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

We offer and grant franchises for shops offering ice cream as well as other beverages, products, accessories, and merchandise (each, a "Jeni's Ice Creams Scoop Shop") to persons that meet our criteria and qualifications (including, that corporate employees do not qualify to acquire a franchise). Jeni's Ice Creams Scoop Shops operate using the Marks and the business formats, methods, procedures, designs, layouts, standards, and specifications we specify, each as we may modify from time to time (together, the "System"). We call the Jeni's Ice Creams Scoop Shop that you operate your "Shop." Your Shop will operate at a site selected by you and approved by us (the "Premises"). You must comply with all of the mandatory standards, specifications, operating procedures, and rules that we prescribe from time to time for operating a Jeni's Ice Creams Scoop Shop ("System Standards").

Our parent is Jeni's Splendid Ice Creams, LLC ("Parent"). Parent owns the Jeni's® trademark and other trademarks, service marks, logos, and commercial symbols we periodically authorize (the "Marks") and licenses the Marks and other intellectual property rights to us for use by our franchisees.

You agree at all times to operate and maintain your Shop according to each and every System Standard, as we periodically modify and supplement them. Though we retain the right to establish and periodically modify System Standards, you retain the sole responsibility for the day-to-day management and operation of your Shop and the implementation and maintenance of System Standards at your Shop. System Standards may regulate any aspect of the operation and maintenance of your Shop, including any one or more of the following:

We have developed and may continue to develop System Standards for types, models, and brands of required fixtures, furniture, equipment, components of the Computer System, furnishings, signs, and other operating assets, inventory, products, materials, and services used by Jeni's Ice Creams Scoop Shops. We may require you to purchase and use only the products and services meeting our System Standards. We may also require you to purchase the products and services only from suppliers that we have designated or approved.

  • (3) cease to directly or indirectly identify yourself or your business as a current or former Jeni's Ice Creams Scoop Shop or as one of our current or former franchise owners (except in connection with other Jeni's Ice Creams Scoop Shops you operate in compliance with the terms of a valid Franchise Agreement with us) and take the action required to cancel or assign all fictitious or assumed name or equivalent registrations relating to your use of any Mark;
  • (4) if we do not exercise our option to purchase your Shop under Section 15.D below, promptly and at your own expense, make the alterations we specify to distinguish your Shop clearly from its former appearance and from other Jeni's Ice Creams Scoop Shops, including by removing all materials and signage bearing our Marks and removing from both the interior and exterior of the Premises all materials and components of our trade dress as we determine to be necessary in order to prevent public confusion and in order to comply with the non-competition provisions set forth in Section 15.C;
  • (5) cease using and, at our direction, either disable or transfer, assign, or otherwise convey to us full control of all Contact Information and Digital Presences that you used to operate your Shop or that displays any of the Marks or any reference to the franchise system (provided that all liabilities and obligations arising from any such Contact Information or Digital Presence prior to the date of the transfer, assignment, or conveyance to us will remain your sole responsibility in all respects, and any costs we incur in connection therewith will be indemnifiable under Section 16.D);
  • (6) return to us or destroy (as we require) all items, forms, and materials containing any Mark or otherwise identifying or relating to Jeni's Ice Creams Scoop Shops, and any and all Confidential Information (including the Brand Manual and any and all customer data or other information from your Computer System);
  • (7) comply with all other System Standards we establish from time to time (and all applicable laws) in connection with the closure and de-identification of your Shop, including as it relates to disposing of Personal Information, in any form, in your possession or the possession of any of your employees;

What This Means (2025 FDD)

According to the 2025 FDD, Cream franchisees are required to operate their shops according to the System Standards that Cream establishes and modifies periodically. These System Standards can regulate any aspect of the shop's operation and maintenance. Cream's parent company, Jeni's Splendid Ice Creams, LLC, owns the Jeni's® trademark and other trademarks, service marks, logos, and commercial symbols, which it licenses to Cream for use by its franchisees. Therefore, franchisees' use of Cream's trademarks is directly tied to their compliance with the System Standards.

Cream may require franchisees to purchase and use only products and services that meet its System Standards. These standards apply to fixtures, furniture, equipment, computer systems, furnishings, signs, inventory, products, materials, and services. Cream may also require franchisees to purchase these items only from designated or approved suppliers. This ensures consistency and quality across all Cream locations, maintaining the integrity of the brand and associated trademarks.

Upon termination of the Franchise Agreement, the franchisee must cease identifying themselves as a current or former Cream franchisee, cancel any registrations relating to the use of Cream's marks, and alter the shop to distinguish it from other Cream locations. They must also remove all materials and signage bearing Cream's marks. Compliance with these requirements is essential to protect Cream's trademarks and prevent public confusion. The franchisee must also comply with all System Standards related to the closure and de-identification of their shop, including the disposal of personal information.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.