If a franchisee brings a copyright matter to Cream's attention, does Cream control the action?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We need not protect or defend our copyrighted works. We may control any action involving the copyrighted works, even if you bring the matter to our attention. We need not take affirmative action when notified of infringement of or participate in your defense nor indemnify you for damages or expenses in a proceeding involving the copyrighted works.
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, Cream retains control over any action involving its copyrighted works, even if a franchisee brings the matter to their attention. This means that while a franchisee may notify Cream of a potential copyright infringement, Cream has the sole discretion to decide whether or not to take action.
This arrangement has significant implications for prospective Cream franchisees. Cream is not obligated to protect or defend its copyrighted works, nor is it required to take any affirmative action upon notification of infringement. Furthermore, Cream is not obligated to participate in a franchisee's defense or indemnify them for damages or expenses in any legal proceeding involving the copyrighted works.
In practical terms, a Cream franchisee who identifies a potential copyright infringement related to Cream's materials has no guarantee that Cream will take any action to address the issue. The franchisee could potentially face legal challenges without Cream's support or financial assistance. This is a notable risk for franchisees, as they are bound to use Cream's copyrighted materials in their daily operations and could be held liable for infringements even if they are not the direct cause. Franchisees should consider this carefully and perhaps seek clarification from Cream regarding their approach to copyright protection and franchisee support in such matters.