What happens if a Cream franchisee is deemed to have any interest in intellectual property related to the franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, any improvements, developments, or modifications to the franchise system, including new operational systems and materials created by the franchisee or their personnel, automatically become the property of Cream and its affiliates. This includes intellectual property.
If a Cream franchisee, their employees, or representatives are found to have any interest in such intellectual property, they are obligated to assign all rights, titles, and interests in those innovations to Cream. This assignment extends to obtaining the same rights from their personnel and representatives, ensuring that Cream maintains complete ownership of any intellectual property related to the franchise system.
This clause is fairly standard in franchising, as franchisors need to protect their brand and system. It prevents franchisees from claiming ownership of improvements that could benefit the entire franchise network. Prospective Cream franchisees should understand that any innovations they develop related to the Cream system will belong to Cream, not them.