Can Cream modify Brand Fund programs, services, or expenditures at any time?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have exclusive control over all programs and services administered by the Brand Fund, with sole discretion over the creative concepts, materials, and campaigns and their geographic market, media placement, and allocation. The Brand Fund may pay for preparing and producing video, audio, and written materials and electronic media; sponsoring, supporting, and/or donating proceeds to one or more charitable, social, or community organizations or initiatives and/or hosting campaigns, initiatives, and/or events for the foregoing; developing, implementing, and maintaining any Digital Presences or other software or applications; administering national, regional, digital, or local advertising and marketing campaigns and/or programs; using advertising, promotion, and marketing agencies and other advisors to provide assistance; supporting public relations, market research, and other advertising, promotion, and marketing strategy or implementation activities; and/or any other expenditures that are directly or indirectly related to promoting the Marks, the System, the brand, and/or Jeni's Ice Creams Scoop Shops. We may also use the Brand Fund to pay for the Brand Fund's administrative and overhead costs, including the reasonable salaries and benefits of personnel who manage and administer the Brand Fund, and any other expenses that we or our affiliates incur that are related to administering or directing the Brand Fund and its programs. We may modify Brand Fund programs, services, or expenditures at any time in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream has the authority to modify Brand Fund programs, services, or expenditures at any time and at their sole discretion. This means that Cream has complete control over how the Brand Fund is used, including the types of advertising, marketing, and public relations programs that are implemented.
As a Cream franchisee, this implies that you may not have direct input into how the Brand Fund is spent, even though you are required to contribute a percentage of your net sales to it. The FDD states that Cream has exclusive control over all programs and services administered by the Brand Fund, including creative concepts, materials, campaigns, geographic market, media placement, and allocation. The Brand Fund can be used for a wide range of activities, such as preparing marketing materials, sponsoring events, developing digital presences, and covering administrative costs.
This level of control allows Cream to adapt marketing strategies quickly based on market conditions or brand needs. However, it also means that franchisees bear the risk that the Brand Fund may not directly benefit their specific location or market. While the Brand Fund aims to promote the Cream brand and Jeni's Ice Creams Scoop Shops generally, there is no guarantee that individual shops will see a proportional return on their contribution. Franchisees should be aware that Cream does not have a fiduciary obligation regarding the Brand Fund's administration.
Cream can also reduce or suspend Brand Fund contributions or operations, or even terminate the Brand Fund altogether, with prior written notice to franchisees. If the Brand Fund is terminated, the remaining balance will be spent in accordance with the terms outlined in the FDD. Cream also has the option to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds, provided that each Brand Fund remains subject to the conditions outlined in the FDD.