Who is included in the non-disparagement agreement for Cream franchisees?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
During and after the Term, you and your owners agree not 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 not to) disparage or otherwise speak or write negatively, directly or indirectly, of us, our affiliates, any of our or our affiliates' directors, officers, employees, representatives or affiliates, current and former franchisees or developers of us or our affiliates, the Jeni's ® brand, the System, any Jeni's Ice Creams Scoop Shop, any other brand or service-marked or trademarked concept operated or franchised by us or our affiliates, or take any other action which would, directly or indirectly, subject any of the foregoing to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact or injure the goodwill of the System. Notwithstanding anything to the contrary, in no event will you be prohibited from providing truthful testimony in connection with a legal proceeding or governmental investigation. In addition, nothing in this Agreement shall prohibit you from reporting a suspected violation of law to the appropriate governmental agency or authority.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the non-disparagement clause extends beyond just the franchisee. It includes the franchisee and their owners, and also extends to their current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns. This means Cream aims to control negative statements from a wide range of individuals connected to the franchisee, both during and after the franchise term.
This provision prevents these individuals from disparaging Cream, its affiliates, directors, officers, employees, representatives, current and former franchisees or developers, the Jeni's® brand, the System, any Jeni's Ice Creams Scoop Shop, or any other brand or service-marked or trademarked concept operated or franchised by Cream or its affiliates. The non-disparagement clause also covers actions that could subject these entities to ridicule, scandal, reproach, scorn, or indignity, or negatively impact the goodwill of the System.
However, the agreement does not prohibit anyone from providing truthful testimony in a legal proceeding or governmental investigation, nor does it prevent reporting a suspected violation of law to the appropriate governmental agency or authority. This ensures that franchisees and related parties retain the right to participate in legal and regulatory processes without fear of retribution under the non-disparagement clause.
Prospective franchisees should carefully consider the breadth of this non-disparagement clause and understand that their actions, as well as the actions of those closely associated with them, could be subject to scrutiny under this provision. It is important to fully understand the implications of this clause before entering into a franchise agreement with Cream.