With whom are Cream franchisees prohibited from communicating regarding any infringement, challenge, or claim related to the Marks or System, besides Cream, its affiliates, and their attorneys, and the franchisee's attorneys?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
attorneys, regarding any infringement, challenge, or claim. We and our affiliates may take the action we or they deem appropriate (including no action) and control exclusively any litigation or other legal or administrative proceeding arising from any infringement, challenge, or claim or otherwise concerning the Marks or the System. You agree to sign any documents and take any other action that, in the opinion of our and our affiliates' attorneys, are necessary or advisable to protect and maintain our and our affiliates' (as applicable) interests in the Marks and the System.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are restricted in who they can communicate with regarding any infringement, challenge, or claim related to Cream's Marks or System. Besides Cream, its affiliates, and their attorneys, as well as the franchisee's own attorneys, the document does not explicitly state any other parties with whom communication is prohibited. However, the FDD states that Cream and its affiliates have the right to take any action they deem appropriate regarding any infringement, challenge, or claim. The franchisee agrees to sign any documents and take any action that Cream and its affiliates' attorneys deem necessary to protect the Marks and System.
This implies that Cream wants to maintain tight control over any legal matters concerning its brand and system. By limiting communication, Cream aims to ensure a unified and strategic approach to protecting its intellectual property. This is a common practice in franchising, as franchisors need to safeguard their trademarks and operational methods consistently across all franchise locations.
If a Cream franchisee encounters any situation involving potential infringement or challenges to the brand, they must promptly notify Cream and follow their directions. Failure to do so could potentially jeopardize the franchisee's rights under the franchise agreement. Prospective franchisees should seek clarification from Cream regarding the specific protocols and guidelines for handling such situations to ensure they fully understand their obligations and limitations.