What representation does the Cream franchisee make regarding their employees' and representatives' agreements concerning Innovations?

According to the 2025 FDD, Cream franchisees agree that all improvements, developments, derivative works, feedback, enhancements, or modifications to the System and any Confidential Information (collectively, "Innovations") made or created by you, your employees or your representatives, whether developed separately. This means that any advancements or changes to the Cream system or confidential information, regardless of who creates them (franchisee, employees, or representatives), become the property of the franchisor.

This clause has significant implications for a prospective Cream franchisee. It means that if a franchisee or their staff develops a new process, recipe, or technology that improves the Cream business, Cream owns it. The franchisee cannot independently profit from or protect these innovations.

This type of clause is relatively standard in franchising. Franchisors want to maintain control over their systems and ensure that successful innovations are shared across the entire franchise network, benefiting all franchisees and the brand as a whole. However, it is crucial for franchisees to understand that they will not have exclusive rights to any improvements they develop within the Cream system.