factual

What are Cream franchisees prohibited from using after termination regarding the Cream brand?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

AND OBLIGATIONS UPON TERMINATION OR EXPIRATION**.

A. PAYMENT OF AMOUNTS OWED TO US.

You agree to pay us the Royalty, Brand Fund Contributions, late fees and interest, and all other amounts owed to us and our affiliates which then are unpaid within 30 days after this Agreement expires or is terminated.

B. DE-IDENTIFICATION.

Upon termination or expiration of this Agreement, you and your owners must immediately:

  • (1) close your Shop for business to customers and cease to directly or indirectly sell any products and services of any kind and in any manner from your Shop and/or using the Marks, unless we direct you otherwise in connection with our exercise of our option to purchase pursuant to Section 15.D;

  • (2) cease to directly or indirectly use any Mark, any colorable imitation of a Mark, other indicia of a Jeni's Ice Creams Scoop Shop, or any trade name, trademark, service mark, or other commercial symbol that indicates or suggests a connection or association with us or the System, in any manner or for any purpose (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);

  • (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;

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, franchisees must cease using several brand-related items. Specifically, franchisees cannot directly or indirectly use any Cream Mark, any imitation of a Cream Mark, or any other commercial symbol that suggests a connection to the Cream franchise system. This prohibition extends to all uses and purposes, except if the franchisee continues to operate other Cream locations under a valid franchise agreement.

Additionally, franchisees must stop identifying themselves or their business as a current or former Cream shop or franchise owner. They are required to cancel or assign all registrations related to the use of any Cream Mark. This means a franchisee cannot continue to benefit from the brand's reputation or goodwill after the agreement ends.

Furthermore, franchisees are obligated to remove all materials and signage bearing Cream Marks and alter their shop to distinguish it from its former appearance and other Cream locations. This includes removing all trade dress components from both the interior and exterior of the premises to prevent public confusion and comply with non-competition provisions. Franchisees must also cease using and transfer control of all contact information and digital presences associated with the Cream shop to the franchisor.

Finally, franchisees must return or destroy all items, forms, and materials containing any Cream Mark or relating to Cream shops, including confidential information like the Brand Manual and customer data. Compliance with these obligations must be demonstrated to Cream's satisfaction. These measures ensure a clean break between the franchisee and the Cream brand, protecting the integrity and exclusivity of the franchise system.

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.