Does the non-disparagement clause for Cream extend beyond the term of the franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
E. NON-DISPARAGEMENT.
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 both during and after the term of the franchise agreement. This means that franchisees and their owners (including current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns) are prohibited from disparaging Cream, its affiliates, directors, officers, employees, representatives, current and former franchisees, the Jeni's® brand, the System, any Jeni's Ice Creams Scoop Shop, or any other brand concept operated, licensed, or franchised by Cream or its affiliates, both while the franchise agreement is active and after it has expired.
The non-disparagement clause prevents franchisees from speaking or writing negatively, directly or indirectly, about Cream. It also prohibits any action that would subject the aforementioned parties to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact or injure the goodwill of the System or the Marks. This obligation continues even after the franchise agreement concludes.
However, the agreement specifies two exceptions to the non-disparagement clause. Franchisees are not prohibited from providing truthful testimony in connection with a legal proceeding or governmental investigation. Additionally, franchisees retain the right to report suspected violations of law to the appropriate governmental agency or authority, regardless of the non-disparagement clause. This ensures that franchisees can fulfill legal obligations and report misconduct without fear of reprisal under the franchise agreement.