What happens if a Cream franchisee breaches trust and confidence regarding Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All Confidential Information will be owned by us or our affiliates (other than personally identifiable information relating to the employees, officers, contractors, owners or other personnel of you, your affiliates, or your Jeni's Ice Creams Scoop Shop, and/or such other personally identifiable information designated by us from time to time). You acknowledge and agree that: (1) you will not acquire any interest in any of our Confidential Information, other than the right to use it as we specify under this Agreement or the Franchise Agreements you sign, in each case in accordance with the terms of such agreement; and (2) our Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you will protect it. You acknowledge that any unauthorized use or disclosure of our Confidential Information would be an unfair method of competition and a breach of trust and confidence and will result in irreparable harm to us and/or our affiliates. 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 exercise of your Development Rights in accordance with this Agreement, and/or the operation of Jeni's Ice Creams Scoop Shops under the respective Franchise Agreements, 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 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 exercising your Development Rights in accordance with this Agreement, and/or operating Jeni's Ice Creams Scoop Shops in accordance with Franchise Agreements with us; 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;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, any unauthorized use or disclosure of Cream's Confidential Information by a franchisee is considered an unfair method of competition and a breach of trust and confidence. This breach will result in irreparable harm to Cream and/or its affiliates.
Cream outlines specific requirements for handling confidential information. Franchisees and their owners must process, retain, use, collect, and disclose Cream's Confidential Information strictly to the limited extent necessary for exercising their Development Rights or operating Jeni's Ice Creams Scoop Shops under the Franchise Agreements. This information cannot be used for any other purpose. Franchisees must also adhere to Cream's privacy policies and standards, as well as any instructions provided by Cream or its representatives.
Furthermore, franchisees are obligated to keep confidential and not disclose, sell, distribute, or trade Cream's Confidential Information to any person other than their employees and representatives who need to know the information to assist in exercising Development Rights or operating Jeni's Ice Creams Scoop Shops. Franchisees are responsible for any violation of this requirement by any person to whom they provide Confidential Information. Unauthorized copies of Cream's Confidential Information are prohibited.
Upon termination or expiration of the Development Agreement, the franchisee must return or destroy any and all Confidential Information, except as used in connection with the operation of any Jeni's Ice Creams Scoop Shop under a Franchise Agreement with Cream. This highlights the importance Cream places on protecting its confidential information and the potential consequences for franchisees who fail to do so.