Does Cream need to indemnify a franchisee for damages or expenses in a proceeding involving the copyrighted works?

According to Cream's 2025 Franchise Disclosure Document, Cream is not required to indemnify franchisees for damages or expenses in legal proceedings involving copyrighted works. Cream and/or its affiliates claim copyrights in the Brand Manual, content on Digital Presences, advertising materials, any or all of the design elements contained within the Marks, and other advertising or marketing materials used in operating Jeni's Ice Creams Scoop Shops and the System. Cream has not registered these copyrights with the U.S. Copyright Office. Franchisees are permitted to use the copyrighted works only as specified by Cream while operating their Shop and must stop using them if directed to do so. Cream retains the right to modify or discontinue using any copyrighted works.

Cream does not need to protect or defend its copyrighted works and may control any action involving the copyrighted works, even if a franchisee brings the matter to their attention. Cream is not obligated to take affirmative action when notified of infringement or participate in a franchisee's defense.

This means that if a franchisee is sued for copyright infringement related to the use of Cream's copyrighted materials, Cream is not obligated to cover the franchisee's legal expenses or any damages awarded against them. This is a significant risk for franchisees, as they could face substantial financial burdens in the event of a copyright dispute. It is important for prospective franchisees to understand this lack of indemnification and to consider obtaining their own insurance or legal advice to protect themselves against such risks.