Does the Cream franchisee's obligation to assist with ownership rights to Innovations continue after the franchise agreement expires or terminates?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement you and your owners must immediately: (1) cease conducting the business granted hereunder or holding yourself out to the public as being a developer of Jeni's Ice Creams Scoop Shops except as permitted under Franchise Agreements; (2) return to us or destroy (as we require) any and all Confidential Information (other than as used by you in connection with the operation of any Jeni's Ice Creams Scoop Shop under a Franchise Agreement with us); (3) comply with all other standards we establish from time to time (and all applicable laws) in connection with the wind-down of your business contemplated by this Agreement; and (4) without limiting any other rights or remedies to which we may be entitled, you must pay all amounts owing to us pursuant to this Agreement up to the date of termination.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
Based on the 2025 FDD, the franchise agreement for Cream includes stipulations regarding the franchisee's conduct after the agreement's termination or expiration. Specifically, upon termination or expiration, the franchisee must immediately cease conducting the business granted under the agreement and stop representing themselves as a Cream developer, except as permitted under other franchise agreements. They must also return or destroy any and all Confidential Information as required by Cream, unless it's used in connection with another Cream Scoop Shop under a separate Franchise Agreement.
Additionally, the franchisee is obligated to comply with all standards established by Cream and applicable laws related to winding down their business. This includes paying all amounts owed to Cream up to the termination date, without limiting any other rights or remedies available to Cream. These obligations are designed to protect Cream's brand, trade secrets, and financial interests even after the franchise relationship ends.
However, the FDD excerpt does not explicitly state whether the franchisee's obligation to assist with ownership rights to innovations continues after the franchise agreement expires or terminates. A prospective Cream franchisee should seek clarification from the franchisor regarding any ongoing obligations related to innovations or intellectual property after the termination or expiration of the franchise agreement.