Can Cream sell Jeni's branded ice cream at third-party businesses within the Development Area?
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 the internet, catalog sales, telemarketing, direct marketing, e-commerce, product lines in other businesses, or through any other digital 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, 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 Jeni's® -branded ice cream or products at third-party businesses;
Source: Item 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream and its affiliates retain the right to establish businesses and distribution channels, other than Jeni's Ice Creams Scoop Shops, that sell products at retail, wholesale, or through the internet, regardless of location, including within a franchisee's Development Area. This includes the right to offer and sell Jeni's-branded ice cream or products at third-party businesses.
This means that even within a franchisee's designated Development Area, Cream can independently sell Jeni's branded ice cream through various channels like retail partnerships or online platforms. A franchisee's Area Development Agreement does not grant an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Cream.
This lack of territorial exclusivity could impact a franchisee's potential revenue, as Cream can leverage alternative distribution methods within the same area. A prospective franchisee should carefully consider the potential for competition from Cream's other business activities and distribution channels when evaluating the franchise opportunity and estimating potential earnings.
Cream is also not required to pay the franchisee if they exercise any of these rights. This should be considered when projecting revenue and profit margins.