What obligation does a Cream franchisee have to ensure their family members protect Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All Confidential Information will be owned by us or our affiliates (other than personally identifiable information relating to the employees, officers, contractors, owners or other personnel of you, your affiliates, or your Jeni's Ice Creams Scoop Shop, and/or such other personally identifiable information designated by us from time to time). You acknowledge and agree that: (1) you will not acquire any interest in any of our Confidential Information, other than the right to use it as we specify under this Agreement or the Franchise Agreements you sign, in each case in accordance with the terms of such agreement; and (2) our Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you will protect it. You acknowledge that any unauthorized use or disclosure of our Confidential Information would be an unfair method of competition and a breach of trust and confidence and will result in irreparable harm to us and/or our affiliates. You and your owners agree 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 to):
- (a) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for exercise of your Development Rights in accordance with this Agreement, and/or the operation of Jeni's Ice Creams Scoop Shops under the respective Franchise Agreements, and not for any other purpose of any kind;
- (b) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and standards we establish from time to time, and our and our representative's instructions;
- (c) keep confidential and not disclose, sell, distribute, or trade our Confidential Information to any person other than those of your employees and representatives who need to know such Confidential Information for the purpose of assisting you in exercising your Development Rights in accordance with this Agreement, and/or operating Jeni's Ice Creams Scoop Shops in accordance with Franchise Agreements with us; and you agree that you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information;
- (d) not make unauthorized copies of any of our Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees have a significant responsibility to protect the brand's Confidential Information, extending that obligation to their family members. Cream considers its Confidential Information proprietary and includes trade secrets, disclosing it to franchisees only under the condition that they protect it. Unauthorized use or disclosure is considered an unfair method of competition and a breach of trust, which could result in irreparable harm to Cream.
To ensure the protection of this information, Cream requires franchisees to actively involve their current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns. Franchisees must use their best efforts to ensure these individuals adhere to specific guidelines regarding the handling of Confidential Information. These guidelines include processing, retaining, using, collecting, and disclosing Confidential Information strictly for the purpose of exercising development rights or operating Jeni's Ice Creams Scoop Shops, in accordance with established privacy policies and standards.
Furthermore, franchisees must ensure that Confidential Information is not disclosed, sold, distributed, or traded to any person other than employees and representatives who need to know the information to assist in exercising development rights or operating the Scoop Shops. Franchisees are held responsible for any violation of this requirement by anyone to whom they provide Confidential Information. This includes preventing unauthorized copies of Confidential Information.
In practical terms, a Cream franchisee must actively communicate the importance of confidentiality to their family and other related parties, implement training and monitoring procedures, and take appropriate action if any breaches occur. This obligation highlights the importance Cream places on protecting its proprietary information and the potential legal and financial repercussions for franchisees who fail to meet these requirements.