Can Cream sell Jeni's-branded ice cream through third-party businesses within a franchisee's protected territory?
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;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream retains the right to establish businesses and distribution channels, other than Jeni's Ice Creams Scoop Shops, that sell products at retail, wholesale, or through any Digital Presence, including within a franchisee's protected territory. This includes the right to offer and sell Jeni's-branded ice cream or products at third-party businesses within the protected territory.
This means that even if a franchisee has a protected territory, Cream can still sell Jeni's-branded products through other businesses in that area. These other businesses could operate under names or brands that are similar to or competitive with Cream's trademarks. This reservation of rights extends to various distribution channels, including retail, wholesale, and online sales.
For a prospective franchisee, this indicates that the protected territory does not guarantee exclusive rights to the Jeni's brand within that area. Cream retains significant control over distribution and can introduce competition within the franchisee's territory through alternative channels. This is a crucial consideration for franchisees evaluating the potential market and revenue within their protected territory, as Cream can leverage third-party businesses to sell Jeni's products, potentially impacting the franchisee's sales.