Outside of my Protected Territory, what rights does Cream retain regarding business activities?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
ite selection area, or any other geographic area, other than your Protected Territory.
Other than your Protected Territory, if any, you have no territorial protection and we and our affiliates retain all rights to conduct business activities of any kind in any location, 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), 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;
(6) be acquired by or acquire (regardless of the form of transaction(s)), any other business, including businesses that operate or allow others to establish and operate businesses similar to, the same, or competitive with Jeni's Ice Creams Scoop Shops, at any location in the world, including in the Protected Territory (and in the event of such an acquisition, we and/or the acquirer and its affiliates will have the right to continue to establish and operate, and authorize others to establish and operate, such businesses, at any location in the world, including in the Protected Territory); and
(7) engage in all other activities not expressly prohibited by the Franchise Agreement, at any location in the world, including in the Protected Territory.
We may offer and sell and grant others the right to offer and sell goods and services to customers located anywhere, including in your Protected Territory. There are no limitations on your ability to solicit customers in any location. However, you may not engage in any promotional or similar activities, whether directly or indirectly, through any Digital Presence. You may not sell any Shop product or service through any alternative channel of distribution, including any Digital Presence.
Source: Item 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees receive a Protected Territory, but Cream retains significant rights outside of it. Cream and its affiliates can conduct business activities of any kind in any location outside the Protected Territory. This includes establishing and operating other Cream Scoop Shops, or allowing others to do so, under terms and conditions Cream deems appropriate.
Cream also reserves the right to establish and operate any other type of business, even those that offer products and services identical, similar, or competitive with Cream Scoop Shops. These businesses can operate under different trade names, trademarks, service marks, and commercial symbols. Cream can also establish other distribution channels, such as retail, wholesale, or digital presence, regardless of the location or nature of the customers they serve, even if they compete with Cream Scoop Shops or sell Cream-branded products at third-party businesses.
Furthermore, Cream can establish Cream Scoop Shops or other businesses using the Cream system in non-traditional venues like airports, hospitals, casinos, parks, hotels, universities, and stadiums, even within a franchisee's Protected Territory. Cream can also conduct marketing, advertising, and promotional activities anywhere, including within the Protected Territory, which may involve product giveaways or the sale of similar products. Cream also retains the right to be acquired by or acquire any other business, including competitors, and continue operating those businesses anywhere in the world, including within a franchisee's Protected Territory. Finally, Cream can engage in any activities not expressly prohibited by the Franchise Agreement, anywhere in the world, including the Protected Territory. Cream is not required to pay franchisees if it exercises any of these rights.
In practical terms, a Cream franchisee's Protected Territory offers limited security, as Cream retains extensive rights to operate and allow others to operate competing businesses and alternative distribution channels both inside and outside the Protected Territory. This means a franchisee could face competition from Cream itself or other businesses authorized by Cream, even within their own territory. Prospective franchisees should carefully consider these factors and evaluate the potential impact on their business before investing in a Cream franchise.