Does the nature or location of customers impact Cream's ability to establish other businesses and distribution channels?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) establish, and allow others to establish, businesses and distribution channels other than a Jeni's Ice Creams Scoop Shop (including, selling products at retail, wholesale, or through any Digital Presence, as defined in Section 5.B), wherever located or operating, including in your Protected Territory, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that operate under trade names, trademarks, service marks, or commercial symbols that are similar to, the same, or competitive with the Marks, and/or that sell products or services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, including the offer and sale of Jeni's® -branded ice cream or products at third-party businesses;
(4) establish and operate, and allow others to establish and operate, any Jeni's Ice Creams Scoop Shop, or other business using the Marks and/or the System, and/or offering and selling any of the products or services that are similar to, the same, or competitive with those products or services offered by Jeni's Ice Creams Scoop Shop, at or through any non-traditional venues, including, temporary or seasonal facilities or business operated within any larger venue or closed market such as an airport, hospital or medical center, casino or gaming center, convention or business center, fairground, state, local, or national park, hotel or resort, military base, transportation or transit center, university, stadium, or entertainment center, at any location in the world, including in the Protected Territory;
(5) conduct marketing, advertising, and/or other promotional activities, events, and campaigns, at any location in the world, including in the Protected Territory, including events, activities, and campaigns that involve product giveaways and/or the offer and sale of products and services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, and/or using the Marks;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream retains the right to establish other businesses and distribution channels, irrespective of the customer's nature or location. Cream reserves the right to establish businesses and distribution channels other than a Jeni's Ice Creams Scoop Shop, including selling products at retail, wholesale, or online, regardless of the customers they serve. This includes the right to operate businesses under different trade names that may be similar to or competitive with the Cream brand.
Cream also reserves the right to establish Jeni's Ice Creams Scoop Shops or other businesses using Cream's system at non-traditional venues like airports, hospitals, casinos, parks, hotels, military bases, universities, and stadiums, without regard to the franchisee's Development Area or Protected Territory. Cream can conduct marketing and promotional activities, including product giveaways, anywhere in the world, even within a franchisee's Protected Territory.
This means that as a Cream franchisee, you may face competition from other Cream-owned or authorized businesses, even within your designated territory. These businesses could operate under different brands or in non-traditional venues, and their customer base will not be a factor in Cream's decisions. Cream's ability to establish alternative distribution channels could impact a franchisee by creating competition within or near their protected territory.
Cream's extensive rights to operate and authorize other businesses and distribution channels, regardless of customer location or nature, highlight the importance of understanding the scope of the Protected Territory and the potential for competition from Cream's other ventures. A prospective franchisee should carefully evaluate the potential impact of these reserved rights on their investment and profitability.