What happens if a Cream franchisee fails to comply with the Digital Presence guidelines?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We will make the brand manual for the operation of Jeni's Ice Creams Scoop Shops available to you during the Term (the "Brand Manual"), which may include one or more separate manuals, newsletters, memos, or bulletins, as well any audio or video content, and/or other content available through or distributed by any Digital Presence or other electronic or digital means. The Brand Manual contains mandatory specifications, standards, operating procedures, and rules that we periodically prescribe for operating Jeni's Ice Creams Scoop Shops ("System Standards"), other specifications, standards, and policies we may suggest from time to time, and information on your obligations under this Agreement. We may modify the Brand Manual periodically to reflect changes in System Standards. If we make any portion of the Brand Manual available on any Digital Presence, you agree to monitor and access that Digital Presence for any updates to the Brand Manual. You agree that the Brand Manual and any passwords or other access credentials necessary to access the Brand Manual on any Digital Presence will be deemed to be part of Confidential Information (as defined in Section 6.A). We have no obligation to provide you a printed copy of the Brand Manual.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document does not explicitly state the consequences for a Cream franchisee's failure to comply with the Digital Presence guidelines. However, the FDD does state that the Brand Manual contains mandatory System Standards for operating a Cream shop, and that Cream may modify the Brand Manual periodically to reflect changes in System Standards. The franchisee must monitor any Digital Presence for updates to the Brand Manual. The Brand Manual and any access credentials are part of Confidential Information.
Item 23 outlines several scenarios that could lead to termination of the franchise agreement, such as failing to meet obligations, violating laws, or not correcting failures within specified timeframes. It is possible that non-compliance with Digital Presence guidelines, if considered a violation of the franchise agreement or System Standards, could potentially fall under these termination clauses, especially if the franchisee fails to correct the issue after receiving notice.
To fully understand the consequences of failing to comply with Cream's Digital Presence guidelines, a prospective franchisee should ask the franchisor for specific details and examples of what constitutes non-compliance and what actions Cream might take in such situations. This information would be crucial in assessing the risks and responsibilities associated with maintaining an appropriate digital presence as a Cream franchisee.