Which sections of the Franchise Agreement address trademarks and proprietary information for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
Assistance During the Operation of Your Shop
During your operation of your Shop, we or our designees will:
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- Subject to limitations on scheduling, availability, and similar resources, we will provide you with general advice regarding the operation of your Shop (Franchise Agreement − Section 4.D).
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- Continue to make our Brand Manual available to you (Franchise Agreement − Section 4.E).
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- Let you use our Marks and certain copyrighted and copyrightable materials in connection with the operation of your Shop (Franchise Agreement – Section 5).
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- Approve or disapprove advertising materials (Franchise Agreement Section 9.C).
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- Approve or disapprove alternative vendors (Franchise Agreement Section 8.F).
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- Administer the Brand Fund pursuant to the terms of the Franchise Agreement (Franchise Agreement – Section 9.B).
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- Providing you our mandatory specifications and procedures for bookkeeping, accounting, and other reporting, including our standard chart of accounts (Franchise Agreement – Section 10)
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- Periodically set a maximum or minimum price that you may charge for products and services offered by your Shop. We may also require you to comply with an advertising policy which will prohibit you from advertising any price for a product or service that is different than our suggested retail price. (Franchise Agreement – Section 8.I) (See Item 16).
[Item 14: PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION]
All Confidential Information is exclusively owned by us or our affiliates and is proprietary to our System (other than certain personal information relating to your employees and personnel, and/or certain other data that we do not have access to or are otherwise designated or restricted by us). You and your owners will (and to use each of your best efforts to cause each of your respective current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors and assigns to): (i) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for the development and operation of your Shop in accordance with the Franchise Agreement; (ii) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and system standards we establish, and our and our representative's instructions; (iii) 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 the Franchise Agreement (you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information); (iv) not make unauthorized copies of any of our Confidential Information; (v) 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 the Franchise Agreement (and we may designate or approve the form of confidentiality agreement that you will use); and (vi) at our request, destroy or return any of the Confidential Information. Confidential Information does not include information, knowledge, or know-how, which is lawfully known to the public without violation of applicable law or an obligation to us or our affiliates.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–27)
What This Means (2025 FDD)
According to the 2025 FDD, Item 11 references sections of the Franchise Agreement that pertain to trademarks. Specifically, Section 5 of the Franchise Agreement allows the franchisee to use Cream's Marks and certain copyrighted materials in connection with the operation of their Shop.
Item 14 of the FDD discusses patents, copyrights, and proprietary information. It states that all confidential information is exclusively owned by Cream or its affiliates and is proprietary to their system. Franchisees must adhere to strict guidelines regarding the use, retention, collection, and disclosure of this confidential information, ensuring it is used only to the extent necessary for operating the Shop in accordance with the Franchise Agreement. Franchisees are also responsible for ensuring their employees and representatives comply with these confidentiality requirements.
Furthermore, franchisees must implement and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of Cream's confidential information. This includes establishing reasonable security measures, restricting disclosure to key personnel, and requiring individuals with access to the information to be bound by contractual obligations that protect Cream's rights. At Cream's request, franchisees must either destroy or return any confidential information. Information that is already publicly known without violation of any law or obligation is excluded from confidential information.