Are Cream franchisees required to adhere to specific privacy policies and standards when handling Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
filiates. You and your owners agree 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 to):
- (a) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of your Shop in accordance with this Agreement, and not for any other purpose of any kind;
- (b) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and System Standards we establish from time to time, and our and our representative's instructions;
- (c) keep confidential and not disclose, sell, distribute, or trade our Confidential Information to any person other than those of your employees and representatives who need to know such Confidential Information for the purpose of assisting you in operating your Shop in accordance with this Agreement; and you agree that you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information;
- (d) not make unauthorized copies of any of our Confidential Information;
- (e) adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of any of our Confidential Information, including by establishing reasonable security and access measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve our rights and controls in such Confidential Information, in each case that are no less protective or beneficial to us than the terms of this Agreement (and we reserve the right to designate or approve the form of confidentiality agreement that you use, provided that it is your responsibility to ensure that such agreement complies with and is enforceable under applicable laws in your jurisdiction); and
- (f) at our request, destroy or return any of the Confidential Information.
Confidential Information does not include information, knowledge, or know-how which is lawfully known to the public without violation of applicable law or an obligation to us or our affiliates.
We and our affiliates are not making any representations or warranties, express or implied, with respect to the Confidential Information. We and our affiliates have no liability to you and your affiliates for any errors or omissions from the Confidential Information.
B. INNOVATIONS.
All improvements, developments, derivative works, feedback, enhancements, or modifications to the System and any Confidential Information (collectively, "Innovations") made or created by you, your employees, or your representatives, whether developed separately or in conjunction with us, shall be owned solely by us and will in no event be owned by you or your affiliates.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must adhere to specific privacy policies and standards when handling confidential information. Cream retains ownership of all confidential information, and franchisees are granted a limited right to use it according to the franchise agreement. Unauthorized use or disclosure of this information is considered a breach of trust and can cause irreparable harm to Cream.
Cream franchisees must process, retain, use, collect, and disclose confidential information strictly to the extent necessary for operating their Cream shops and in accordance with the privacy policies and system standards established by Cream. Franchisees are responsible for ensuring that their employees and representatives who have access to confidential information also comply with these requirements. Franchisees must also adopt and maintain safeguards to prevent unauthorized use or disclosure of confidential information, including security measures and confidentiality agreements with personnel.
These obligations extend beyond the term of the franchise agreement. Franchisees must process personal information in accordance with all applicable laws, regulations, and privacy policies. They must also assist Cream in meeting its compliance obligations related to personal information and promptly notify Cream of any requests from customers to access, correct, or delete their personal information. These measures ensure the protection of Cream's confidential information and customer data, which is crucial for maintaining the integrity and reputation of the Cream brand.