What happens to improvements made to the Cream franchise system by a franchisee?
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 made to the franchise system by a franchisee, their employees, or representatives become the property of Cream and its affiliates. This includes new or modified systems of operation, information, or materials created, regardless of whether they were developed independently or in conjunction with Cream.
This means that if a Cream franchisee develops a new operational method, marketing material, or any other enhancement to the Cream system, the rights to that innovation automatically transfer to Cream. The franchisee must assign all rights and interests in such intellectual property to Cream. This applies even if the improvements were created by the franchisee's employees or representatives.
For a prospective Cream franchisee, this clause highlights the importance of understanding intellectual property rights within the franchise agreement. While franchisees may contribute to the system's evolution, they will not retain ownership of their innovations. This is a fairly standard practice in franchising, as it allows the franchisor to maintain uniformity and control over the brand and system-wide operations. However, franchisees should be aware that they will not be able to monetize or utilize their improvements outside of the Cream franchise system.