What happens to customer data from my computer system after termination of my Cream franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) cease using and, at our direction, either disable or transfer, assign, or otherwise convey to us full control of all Contact Information and Digital Presences that you used to operate your Shop or that displays any of the Marks or any reference to the franchise system (provided that all liabilities and obligations arising from any such Contact Information or Digital Presence prior to the date of the transfer, assignment, or conveyance to us will remain your sole responsibility in all respects, and any costs we incur in connection therewith will be indemnifiable under Section 16.D);
- (6) return to us or destroy (as we require) all items, forms, and materials containing any Mark or otherwise identifying or relating to Jeni's Ice Creams Scoop Shops, and any and all Confidential Information (including the Brand Manual and any and all customer data or other information from your Computer System);
- (7) comply with all other System Standards we establish from time to time (and all applicable laws) in connection with the closure and de-identification of your Shop, including as it relates to disposing of Personal Information, in any form, in your possession or the possession of any of your employees; and
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, upon termination of the Cream franchise agreement, franchisees must cease using and, at Cream's direction, either disable or transfer, assign, or otherwise convey to them full control of all contact information and digital presences used to operate the shop. This includes any references to the franchise system. All liabilities and obligations arising from this information before the transfer remain the franchisee's responsibility, and any costs Cream incurs will be indemnifiable.
Furthermore, franchisees must return or destroy (as Cream requires) all items, forms, and materials containing any mark or relating to Cream shops, including all confidential information, such as customer data from the computer system. Franchisees must also comply with all system standards and applicable laws regarding the closure and de-identification of their shop, including disposing of personal information in any form.
In practical terms, this means that a franchisee losing their franchise must relinquish all customer data and digital assets to Cream and ensure all physical and digital materials are either returned or destroyed to prevent any misuse of customer data or brand association after termination. This is a fairly standard practice in franchising to protect the brand and customer relationships.