What section of the Cream franchise agreement defines 'Digital Presence'?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Digital Presence, as defined in Section 5.B), wherever located or operating, including in your Protected Territory, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that operate under trade names, trademarks, service marks, or commercial symbols that are similar to, the same, or competitive with the Marks, and/or that sell products or services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, including the offer and sale of
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Section 5.B of the Cream franchise agreement defines 'Digital Presence'. This definition is important because it clarifies the scope of Cream's rights regarding online marketing and sales activities, especially concerning territories. Cream retains the right to establish businesses and distribution channels beyond physical stores, including online sales, even within a franchisee's protected territory. This includes sales through any Digital Presence.
For a prospective Cream franchisee, this means that while you may be granted a protected territory for a physical store, Cream can still engage in online sales within that territory. This could impact your potential revenue, as customers in your area might choose to purchase Cream products online rather than visiting your store. The franchisee should be aware that Cream can operate other businesses, including online sales, under different brand names that might compete with the franchisee's Cream shop.
Cream's ability to sell through digital channels within a franchisee's territory is a significant consideration. Franchisees should carefully evaluate the potential impact of online competition on their business. It is important to understand how Cream plans to manage its online presence and how it might affect the sales and profitability of individual franchise locations. Franchisees should discuss with Cream what support or strategies are in place to help them compete with online sales within their territory.