If a Cream franchisee is deemed to have any interest in intellectual property related to the franchise system, what must they do?
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, derivative works, feedback, enhancements, or modifications to the franchise system, including new operational systems and materials created by the franchisee or their personnel, become the property of Cream and its affiliates. This applies whether these developments are made independently or in collaboration with Cream.
If a Cream franchisee, their employees, or representatives are found to have any rights or interest in such intellectual property, they are obligated to transfer all rights, title, and interest in those innovations to Cream. This includes securing the same transfer of rights from their personnel and representatives. This ensures that Cream maintains complete ownership and control over any advancements or modifications to its franchise system.
This requirement is fairly standard in franchising, as franchisors typically want to maintain tight control over their brand and system-wide standards. It prevents franchisees from independently developing improvements and potentially claiming ownership or control over aspects of the Cream system. Franchisees should be aware that any creative input or modifications they make to the Cream system automatically become the property of the franchisor.