What is the purpose of the Brand Fund for Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a brand promotion fund (the "Brand Fund") to administer certain advertising, marketing, and public relations programs for the System, the Jeni's® brand, and the promotion of Jeni's Ice Creams Scoop Shops. You hereby agree to contribute to the Brand Fund the amount that we prescribe (the "Brand Fund Contribution"). As of the Effective Date, the amount of the Brand Fund Contribution is 2% of your Net Sales. We may modify the amount of the Brand Fund Contribution from time to time with 30 days prior notice to you, provided that the total amount of the Brand Fund Contribution will not at any time exceed 4% of your Net Sales. The Brand Fund Contribution must be paid by you in the manner we designate from time to time, which may include collecting amounts in the same manner as the Royalty.
We will have exclusive control over all programs and services administered by the Brand Fund, with sole discretion over the creative concepts, materials, and campaigns and their geographic market, media placement, and allocation. The Brand Fund may pay for preparing and producing video, audio, and written materials and electronic media; sponsoring, supporting, and/or donating proceeds to one or more charitable, social, or community organizations or initiatives and/or hosting campaigns, initiatives, and/or events for the foregoing; developing, implementing, and maintaining any Digital Presences or other software or applications; administering national, regional, digital, or local advertising and marketing campaigns and/or programs; using advertising, promotion, and marketing agencies and other advisors to provide assistance; supporting public relations, market research, and other advertising, promotion, and marketing strategy or implementation activities; and/or any other expenditures that are directly or indirectly related to promoting the Marks, the System, the brand, and/or Jeni's Ice Creams Scoop Shops. We may also use the Brand Fund to pay for the Brand Fund's administrative and overhead costs, including the reasonable salaries and benefits of personnel who manage and administer the Brand Fund, and any other expenses that we or our affiliates incur that are related to administering or directing the Brand Fund and its programs. We may modify Brand Fund programs, services, or expenditures at any time in our sole discretion.
The purpose of the Brand Fund is to promote the Marks, the System, the Jeni's® brand, and Jeni's Ice Creams Scoop Shops generally. As such, you acknowledge and agree that there is no guarantee that you or your Shop will benefit from Brand Fund expenditures directly or in proportion to your Brand Fund Contribution. You further acknowledge and agree that neither we nor any of our affiliates or representatives has guaranteed the results of any Brand Fund or other marketing or promotional programs, services, or expenditures in any manner.
We will account for the Brand Fund separately from our other funds. However, neither we nor any of our affiliates has any fiduciary obligation to you or any other person for administering the Brand Fund. The Brand Fund may spend in any fiscal year more or less than the total Brand Fund Contributions in that year, borrow from us or others (paying reasonable interest) to cover deficits, or invest any surplus for future use. We may administer the Brand Fund through a separate entity whenever we deem appropriate, and such entity will have all of the rights and duties specified herein. We have the right, but no obligation, to use collection agents and institute legal proceedings to collect Brand Fund Contributions at the Brand Fund's expense. We may also forgive, waive, settle, and compromise all claims by or against the Brand Fund in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Brand Fund exists to administer advertising, marketing, and public relations programs to promote the Cream brand and Jeni's Ice Creams Scoop Shops. Franchisees are required to contribute to this fund, with the contribution currently set at 2% of Net Sales. Cream has the right to modify this amount with 30 days' notice, but it will not exceed 4% of Net Sales.
The Brand Fund is under the exclusive control of Cream, giving them sole discretion over the creative aspects, materials, campaigns, and their allocation across different markets and media channels. The fund may be used for various activities, including creating video, audio, and written materials, supporting charitable organizations, developing digital presences, and administering advertising campaigns. Cream can also use the Brand Fund to cover administrative and overhead costs, including salaries and benefits for personnel managing the fund.
Cream retains the right to modify or terminate the Brand Fund, reduce or suspend contributions, or even maintain multiple Brand Funds based on geographic region or other criteria. However, there is no guarantee that a franchisee will directly benefit from the Brand Fund expenditures or in proportion to their contribution. Cream does not have any fiduciary duty to franchisees regarding the administration of the Brand Fund, and they are not obligated to provide printed copies of the brand manual.