Can Cream operate businesses under trademarks similar to the Marks within the Cream franchisee's Protected Territory?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ry for your Shop, you do not have a Protected Territory and/or any other territorial protection of any kind, including in the Site Selection Area and/or any other area surrounding your Premises.
Other than your Protected Territory, you have no territorial protection and we and our affiliates retain all rights to conduct business activities of any kind, including the right to:
- (1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the Marks and the System, at any location outside the Protected Territory, on such terms and conditions we deem appropriate;
- (2) establish and operate, and allow others to establish and operate, any other type of business, including any business that may offer products and services which are identical to, similar to, or competitive with products and services offered by Jeni's Ice Creams Scoop Shops, under trade names, trademarks, service marks, and commercial symbols other than the Marks, anywhere in the world, including in the Protected Territory;
- (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;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream retains significant rights regarding business activities, even within a franchisee's protected territory. Cream has the right to establish and operate other types of businesses, including those offering products and services similar to Cream's Scoop Shops, under different trade names, trademarks, service marks, and commercial symbols other than the "Jeni's®" name and marks, anywhere in the world, including within the franchisee's protected territory. This means that Cream could potentially operate a similar ice cream business under a different brand name within your protected territory.
Cream also reserves the right to establish businesses and distribution channels other than Jeni's Ice Creams Scoop Shops, such as selling products at retail, wholesale, or online, within a franchisee's protected territory. These other businesses can operate under names and trademarks similar to Cream's, and sell similar products, including Jeni's-branded ice cream at third-party businesses. This could lead to direct competition within the franchisee's territory from businesses that, while not branded as "Jeni's Ice Creams Scoop Shops", offer similar products and services.
Furthermore, Cream can conduct marketing, advertising, and promotional activities, including product giveaways and sales of similar products, anywhere in the world, including within the protected territory, and may use Cream's trademarks in these activities. Cream also has the right to be acquired by or acquire other businesses, even those that are similar to or competitive with Jeni's Ice Creams Scoop Shops, and to continue operating those businesses anywhere in the world, including within the protected territory. These stipulations highlight the importance of understanding the scope and limitations of the protected territory granted to Cream franchisees.