What is Cream's policy on disclosing Confidential Information to representatives?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
r any other purpose of any kind;
- (b) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and System 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 operating your Shop in accordance with this Agreement; 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;
- (e) 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 this Agreement (and we reserve the right to designate or approve the form of confidentiality agreement that you use, provided that it is your responsibility to ensure that such agreement complies with and is enforceable under applicable laws in your jurisdiction); and
- (f) at our request, destroy or return any of the 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 permitted to disclose confidential information to their representatives only if those representatives need to know the information to assist in exercising development rights or operating a Cream shop. This disclosure must be strictly limited to what is necessary for these purposes.
The FDD emphasizes that franchisees are responsible for any violations of this requirement by anyone to whom they provide confidential information. This means franchisees must ensure their employees and representatives understand and adhere to the confidentiality obligations. Cream also requires franchisees to process, retain, use, collect, and disclose confidential information strictly in accordance with the privacy policies and standards established by Cream, as well as Cream's and its representatives' instructions.
Furthermore, franchisees must implement administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of Cream's confidential information. This includes establishing reasonable security and access measures and potentially requiring individuals with access to sign confidentiality agreements. Cream reserves the right to designate or approve the form of confidentiality agreement used by the franchisee, ensuring it adequately protects Cream's interests.
In practical terms, a Cream franchisee must have robust internal policies and procedures to manage confidential information, including training for employees and representatives. They should also have confidentiality agreements in place and actively monitor compliance to prevent unauthorized disclosures, as they will be held liable for any breaches. Cream retains significant control over how its confidential information is handled, reflecting the importance of protecting its trade secrets and proprietary information.