Can Cream sell Jeni's-branded ice cream at third-party businesses within my Protected Territory?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: TERRITORY]
(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;
(4) establish and operate, and allow others to establish and operate, any Jeni's Ice Creams Scoop Shop, or other business using 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 Shops, at or through any non-traditional venues, including temporary or seasonal facilities or businesses 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 Development Area;
(5) conduct marketing, advertising, and/or other promotional activities, events, and campaigns, at any location in the world, including in the Development Area, 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 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream retains the right to establish businesses and distribution channels, including selling Jeni's-branded products at third-party businesses, even within a franchisee's Protected Territory. This means that even if a franchisee has a Protected Territory, Cream can still sell its products through other channels such as retail, wholesale, or online, and also allow third-party businesses to sell Jeni's-branded ice cream within that territory. This could create competition for the franchisee within their own territory.
Cream also reserves the right to establish and operate Jeni's Ice Creams Scoop Shops or other businesses using the Cream system in non-traditional venues like airports, hospitals, casinos, and parks, even within a franchisee's Protected Territory. Additionally, Cream can conduct marketing and promotional activities, including product giveaways, within the Protected Territory. These activities can involve products and services similar to those offered by Cream Scoop Shops.
Furthermore, Cream has the right to be acquired by or acquire other businesses, including those that are competitive with Cream Scoop Shops, at any location, including within the Protected Territory. In the event of such an acquisition, Cream or the acquiring company can continue to operate these businesses within the franchisee's Protected Territory. Cream is also allowed to engage in any activities not expressly prohibited by the Franchise Agreement within the Protected Territory.
These provisions highlight that while a franchisee may have a Protected Territory, Cream retains significant rights to conduct business and allow others to do so within that territory, potentially impacting the franchisee's market share and profitability. A prospective franchisee should carefully consider these factors and evaluate the potential for competition within their Protected Territory before investing in a Cream franchise.