For Cream, what rights are reserved that are not expressly granted to the franchisee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
For the avoidance of doubt, we reserve for ourselves and our affiliates all rights not expressly granted to you in this Agreement and the right to do all things that we do not expressly agree in this Agreement not to do, in each case, without compensation to you, without regard to proximity to your Development Area, and on such terms and conditions as we deem appropriate. For example, and without limitation, we and our affiliates may, ourselves or through authorized third parties:
- (1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the System, at any location outside the Development Area, 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 "Jeni's® " name and marks, anywhere in the world, including in the Development Area;
- (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 online presence), wherever located or operating, including in your Development Area, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream reserves all rights not explicitly granted to the franchisee. Cream and its affiliates can operate or allow others to operate Jeni's Ice Creams Scoop Shops outside the franchisee's development area under terms Cream deems appropriate. They can also establish and operate other types of businesses, even those that compete with Jeni's Ice Creams Scoop Shops, under different names and trademarks, anywhere in the world, including within the franchisee's development area.
Cream also retains the right to establish other businesses and distribution channels, such as retail, wholesale, or online sales, regardless of location, including within the franchisee's development area. These businesses can serve any customers, irrespective of their location. These activities can be conducted without compensating the franchisee.
This reservation of rights means that a Cream franchisee's territory is not entirely exclusive, even with a development agreement. Cream can still operate or license other businesses that might compete, which could impact the franchisee's potential revenue. Prospective franchisees should carefully consider this when evaluating the potential market and financial projections for their Cream franchise.