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 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 Jeni's® -branded ice cream or products at third-party businesses;
(4) establish and operate, and allow others to establish and operate, any Jeni's Ice Creams Scoop Shop, or other business using the Marks and/or the System, and/or offering and selling any of the products or services that are similar to, the same, or competitive with those products or services offered by Jeni's Ice Creams Scoop Shop, at or through any non-traditional venues, including, temporary or seasonal facilities or business operated within any larger venue or closed market such as an airport, hospital or medical center, casino or gaming center, convention or business center, fairground, state, local, or national park, hotel or resort, military base, transportation or transit center, university, stadium, or entertainment center, at any location in the world, including in the Protected Territory;
(5) conduct marketing, advertising, and/or other promotional activities, events, and campaigns, at any location in the world, including in the Protected Territory, including events, activities, and campaigns that involve product giveaways and/or the offer and sale of products and services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, and/or using the Marks;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream retains specific rights regarding the sale of Jeni's-branded ice cream and related products through various channels, including third-party businesses, even within a franchisee's Development Area. Cream reserves the right to establish and allow others to establish businesses and distribution channels other than Jeni's Ice Creams Scoop Shops. This includes selling products at retail, wholesale, or through any online presence, regardless of the location or nature of the customers.
This reservation of rights extends to businesses operating under names or trademarks similar to or competitive with Jeni's, and includes the sale of Jeni's-branded ice cream at third-party businesses. Cream can also establish and operate Jeni's Ice Creams Scoop Shops or other businesses using the System in non-traditional venues like airports, hospitals, casinos, parks, and universities, even within the franchisee's Protected Territory.
Furthermore, Cream reserves the right to conduct marketing and promotional activities, including product giveaways and sales of products similar to those offered by Jeni's Ice Creams Scoop Shops, within the Protected Territory. These activities can utilize Cream's trademarks. Cream also has the right to be acquired by or acquire other businesses, including those that compete with Jeni's Ice Creams Scoop Shops, and to continue operating such businesses within the Development Area.
In practical terms, a Cream franchisee's Development Area does not guarantee exclusive rights to all distribution channels or sales of Jeni's-branded products. Cream retains considerable flexibility to expand its brand presence through alternative channels and partnerships, even within areas designated for franchise development. This could potentially impact a franchisee's market share and revenue within their Development Area.