What happens if a Cream franchisee discloses Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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, unauthorized use or disclosure of Cream's Confidential Information is considered an unfair method of competition and a breach of trust. This can result in irreparable harm to Cream and/or its affiliates. Cream defines Confidential Information as non-public information about the Cream system and the operation of Jeni's Ice Creams Scoop Shops.
For a Cream franchisee, this means they must protect a wide range of information, including site selection criteria, training materials, system standards, recipes, market research, supplier information, software, operating results, customer data, and any other information Cream designates as confidential. Franchisees are only allowed to disclose Confidential Information to their employees and representatives who need to know the information to assist in operating their Cream shop.
The franchisee is responsible for any violations of this requirement by anyone they provide Confidential Information to. Franchisees must also implement safeguards to prevent unauthorized use or disclosure of Confidential Information. This obligation extends to the franchisee's owners, their current and former spouses, immediate family members, officers, directors, employees, representatives, affiliates, successors, and assigns.
Upon termination or expiration of the franchise agreement, the franchisee must cease using and return or destroy all Confidential Information. Failure to comply with these confidentiality obligations could lead to legal action and financial penalties for the franchisee.