factual

What is the permitted use of Cream's Confidential Information by the franchisee?

Cream Franchise · 2025 FDD

Answer 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 are granted a limited right to use the franchisor's Confidential Information. This right is specifically tied to operating a Jeni's Ice Creams Scoop Shop under the terms of the Franchise Agreement. Cream retains ownership of all Confidential Information, emphasizing that franchisees do not acquire any independent interest in it beyond the specified usage rights.

The permitted use of Cream's Confidential Information is strictly limited to what is necessary for exercising development rights and operating Jeni's Ice Creams Scoop Shops, and it cannot be used for any other purpose. Franchisees must adhere to Cream's established privacy policies and standards when processing, retaining, using, collecting, and disclosing Confidential Information. This includes following any instructions provided by Cream or its representatives.

Franchisees are responsible for ensuring that Confidential Information is kept secure and not disclosed to unauthorized parties. Disclosure is only permitted to employees and representatives who need the information to assist in exercising development rights or operating the Scoop Shops, and the franchisee is liable for any violations of this requirement by those individuals. Additionally, franchisees are prohibited from making unauthorized copies of Cream's Confidential Information. This underscores the importance of maintaining the confidentiality and security of Cream's proprietary information to protect its competitive advantage and prevent potential harm from unauthorized use or disclosure.

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.