factual

What obligation does a Cream franchisee have regarding the processing, retaining, using, collecting, and disclosing of Cream's Confidential Information?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

You and your owners will (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): (i) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of your Shop in accordance with the Franchise Agreement; (ii) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and system standards we establish, and our and our representative's instructions; (iii) 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 operating your Shop in accordance with the Franchise Agreement (you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information); (iv) not make unauthorized copies of any of our Confidential Information; (v) adopt and maintain administrative, physical and technical safeguards to prevent unauthorized use or disclosure of any of our Confidential Information, including by establishing reasonable security and access measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve our rights and controls in such Confidential Information, in each case that are no less protective or beneficial to us than the terms of the Franchise Agreement (and we may designate or approve the form of confidentiality agreement that you will use); and (vi) at our request, destroy or return any of the Confidential Information. Confidential Information does not include information, knowledge, or know-how, which is lawfully known to the public without violation of applicable law or an obligation to us or our affiliates.

For any "personally identifiable information", you must also: (i) process, retain, use, collect, and disclose all personal information only in strict accordance with all applicable laws, regulations, orders, the guidance and codes of practice issued by industry or regulatory agencies, and the privacy policies and terms and conditions of any applicable Digital Presence; (ii) assist us with meeting our compliance obligations under all applicable laws, regulations, and orders relating to personal information, including the guidance and codes of practice issued by industry or regulatory agencies; and (iii) promptly notify us of any communication or request from any customer or other person to access, correct, delete, opt-out of, or limit activities relating to any personal information.

Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 40–42)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the handling of the brand's Confidential Information. Cream defines Confidential Information as non-public details about the System and the operation of Cream Scoop Shops, including site selection criteria, training materials, operational methods, recipes, marketing programs, supplier information, proprietary software, financial performance data, and customer data.

Cream franchisees, along with their owners, are required to process, retain, use, collect, and disclose Cream's Confidential Information strictly to the extent necessary for operating their Shop in accordance with the Franchise Agreement. This includes adhering to Cream's privacy policies and system standards, as well as following any instructions provided by Cream or its representatives. Franchisees must also keep the Confidential Information secure and not disclose it to unauthorized individuals, with responsibility for any violations by those they share the information with. Unauthorized copying is prohibited, and franchisees must implement safeguards to prevent unauthorized use or disclosure, including security measures and confidentiality agreements with personnel. At Cream's request, franchisees must destroy or return any Confidential Information.

Furthermore, Cream franchisees must handle personally identifiable information in strict compliance with all applicable laws, regulations, and industry standards. They are obligated to assist Cream in meeting its compliance obligations related to personal information and must promptly notify Cream of any customer requests to access, correct, delete, or limit the use of their personal information. These stipulations ensure that Cream maintains control over its proprietary information and protects customer data, while also placing a significant responsibility on the franchisee to safeguard this information and adhere to strict guidelines.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.