What is the Cream franchisee's responsibility regarding security measures for Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
n/opt-out preferences; and (x) any other information designated as confidential or proprietary by us.
All Confidential Information is exclusively owned by us or our affiliates and is proprietary to our System (other than certain personal information relating to your employees and personnel, and/or certain other data that we do not have access to or are otherwise designated or restricted by us). You and your owners will (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): (i) 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 the Franchise Agreement; (ii) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and system standards we establish, and our and our representative's instructions; (iii) 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 the Franchise Agreement (you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information); (iv) not make unauthorized copies of any of our Confidential Information; (v) 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 the Franchise Agreement (and we may designate or approve the form of confidentiality agreement that you will use); and (vi) 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.
For any "personally identifiable information", you must also: (i) process, retain, use, collect, and disclose all personal information only in strict accordance with all applicable laws, regulations, orders, the guidance and codes of practice issued by industry or regulatory agencies, and the privacy policies and terms and conditions of any applicable Digital Presence; (ii) assist us with meeting our compliance obligations under all applicable laws, regulations, and orders relating to personal information, including the guidance and codes of practice issued by industry or regulatory agencies; and (iii) promptly notify us of any communication or request from any customer or other person to access, correct, delete, opt-out of, or limit activities relating to any personal information.
All improvements, developments, derivative works, feedback, enhancements, or modifications to any component of the franchise system, including any new or modified systems of operation, and any information or materials made or created by you, your employees or your representatives, whether developed separately or in conjunction with us, will become part of the System and be owned by us and our affiliates. If you, your employees, or your representatives are deemed to have any interest in such intellectual property, you must assign all right, title, and interest in and to such innovations to us and will obtain the same from your personnel and representatives.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You must identify one of your owners who is a natural person with at least 10% ownership interest and voting power in you and who will have authority and signatory power on your behalf (the "Principal Owner") to supervise the business you conduct under the Franchise Agreement. Your Principal Owner must be authorized to deal with us in all matters whatsoever which may arise with respect to the Franchise Agreement. You must obtain our written consent prior to changing the Principal Owner.
You are solely responsible for the management, direction and control of your Shop and all day-to-day operations of your Shop. You must supervise the management and day-to-day operation of your Shop and continuously exert best efforts to promote and enhance your Shop. If you (or your Principal Owner) does not wish to manage the operation of your Shop on a day-to-day basis, you must obtain our approval of any person that you wish to engage to supervise the management of your Shop (each a "Shopkeeper").
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 40–42)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees have several responsibilities regarding the security of Confidential Information. Cream defines Confidential Information as non-public information about the System and the operation of Jeni's Ice Creams Scoop Shops, including site selection criteria, training materials, system standards, recipes, marketing programs, supplier information, proprietary software, operating results, customer data, and any other information designated as confidential.
Cream franchisees must adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of any Confidential Information. These safeguards include establishing reasonable security and access measures and restricting disclosure to key personnel. Franchisees must also ensure that individuals with access to Confidential Information are bound by contractual obligations to protect it and preserve Cream's rights. Cream may designate or approve the form of confidentiality agreement that franchisees must use.
Furthermore, franchisees must process, retain, use, collect, and disclose Cream's Confidential Information strictly to the limited extent necessary for operating their Shop in accordance with the Franchise Agreement, and in accordance with Cream's privacy policies and system standards. Franchisees are responsible for any violation of these requirements by anyone to whom they provide Confidential Information. At Cream's request, franchisees must destroy or return any of the Confidential Information.
For personally identifiable information, Cream franchisees must process, retain, use, collect, and disclose all personal information only in strict accordance with all applicable laws, regulations, orders, the guidance and codes of practice issued by industry or regulatory agencies, and the privacy policies and terms and conditions of any applicable Digital Presence. Franchisees must also assist Cream with meeting its compliance obligations under all applicable laws, regulations, and orders relating to personal information, and promptly notify Cream of any communication or request from any customer or other person to access, correct, delete, opt-out of, or limit activities relating to any personal information.