Can Cream offer Jeni's-branded ice cream at third-party businesses within the Cream franchisee's Protected Territory?
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 significant rights regarding distribution and sales, even within a franchisee's protected territory. Cream reserves the right to establish businesses and distribution channels beyond traditional scoop shops, including selling products at retail, wholesale, or online. This includes the right to offer and sell Jeni's-branded ice cream or products at third-party businesses, regardless of their location, even within a franchisee's protected territory. This reservation of rights extends to businesses operating under similar or competitive trade names.
Cream also reserves the right to establish Jeni's Ice Creams Scoop Shops or other businesses using the Cream system at non-traditional venues such as airports, hospitals, casinos, convention centers, and other similar locations, even within a franchisee's protected territory. Additionally, Cream can conduct marketing, advertising, and promotional activities, including product giveaways and sales of similar products, within the franchisee's protected territory.
For a prospective franchisee, this means that Cream retains considerable control over distribution channels and marketing activities, even within the protected territory granted to the franchisee. The franchisee's protected territory does not guarantee exclusive rights to sell Jeni's-branded ice cream; Cream can still distribute through other channels and businesses. This could impact the franchisee's sales and market share within their territory. Franchisees should carefully consider these reserved rights and their potential impact on their business when evaluating the Cream franchise opportunity.