Are the Innovations developed by the Cream franchisee's affiliates owned by the franchisee or Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All improvements, developments, derivative works, feedback, enhancements, or modifications to the System and any Confidential Information (collectively, "Innovations") made or created by you, your employees or your representatives, whether developed separately or in conjunction with us, shall be owned solely by us and will in no event be owned by you or your affiliates. You represent, warrant, and covenant that your employees and representatives are bound by written agreements assigning all rights in and to any Innovations developed or created by them to you. To the extent that you, your employees or your representatives are deemed to have any interest in such Innovations, you hereby agree to assign, and do assign, all right, title and interest in and to such Innovations to us and agree to obtain the same from your personnel and representatives. To that end, you agree to execute, verify, and deliver such documents and perform such other acts (including appearances as a witness) as we may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such ownership rights in and to the Innovations, and the assignment thereof. Your obligation to assist us with respect to such ownership rights shall continue beyond the expiration or termination of this Agreement. If we are unable for any reason, after reasonable effort, to secure your signature on any document needed in connection with the actions specified in this Section, you hereby irrevocably designate and appoint us and our duly authorized officers and agents as your agent and attorney in fact, which appointment is coupled with an interest and is irrevocable, to act for and on your behalf to execute, verify, and file any such documents and to do all other lawfully permitted acts to further the purposes of this Section with the same legal force and effect as if executed by you.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, any innovations to the Cream system, whether created by the franchisee, their employees, or representatives, become the sole property of Cream. These innovations encompass improvements, developments, derivative works, feedback, enhancements, or modifications to the Cream system and any confidential information. The agreement explicitly states that these innovations will not be owned by the franchisee or their affiliates.
Cream requires franchisees to ensure that their employees and representatives have written agreements assigning all rights to any developed innovations to the franchisee, who then assigns those rights to Cream. This ensures Cream maintains complete control and ownership over any advancements or modifications to their system.
As a prospective franchisee, this means that any ideas or improvements you or your staff develop related to the Cream business must be assigned to Cream. You are obligated to assist Cream in securing their ownership rights by executing necessary documents and providing assistance in legal processes. This obligation extends beyond the term of the franchise agreement. Cream can act as your attorney to execute documents if you fail to do so after a reasonable effort.