What specific actions are Cream franchisees and their personnel prohibited from doing with Cream's Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
All Confidential Information will be owned by us or our affiliates (other than personally identifiable information relating to the employees, officers, contractors, owners or other personnel of you, your affiliates, or your Jeni's Ice Creams Scoop Shop, and/or such other personally identifiable information designated by us from time to time). You acknowledge and agree that: (1) you will not acquire any interest in any of our Confidential Information, other than the right to use it as we specify under this Agreement or the Franchise Agreements you sign, in each case in accordance with the terms of such agreement; and (2) our Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you will protect it. You acknowledge that any unauthorized use or disclosure of our Confidential Information would be an unfair method of competition and a breach of trust and confidence and will result in irreparable harm to us and/or our affiliates. You and your owners agree to (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):
- (a) process, retain, use, collect, and disclose our Confidential Information strictly to the limited extent, and in such a manner, as necessary for exercise of your Development Rights in accordance with this Agreement, and/or the operation of Jeni's Ice Creams Scoop Shops under the respective Franchise Agreements, and not for any other purpose of any kind;
- (b) process, retain, use, collect, and disclose our Confidential Information strictly in accordance with the privacy policies and standards we establish from time to time, and our and our representative's instructions;
- (c) 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 exercising your Development Rights in accordance with this Agreement, and/or operating Jeni's Ice Creams Scoop Shops in accordance with Franchise Agreements with us; and you agree that you will be responsible for any violation of this requirement by any person to whom you provide Confidential Information;
- (d) not make unauthorized copies of any of our Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees and their personnel have specific restrictions regarding the use, handling, and disclosure of Cream's confidential information. Cream retains ownership of all Confidential Information, and franchisees only have the right to use it as specified in the franchise agreement. Unauthorized use or disclosure is considered a breach of trust and unfair competition.
Specifically, franchisees must process, retain, use, collect, and disclose confidential information only to the extent necessary for exercising their development rights or operating Jeni's Ice Creams Scoop Shops under the franchise agreements. This information must be handled strictly in accordance with Cream's privacy policies and standards. Franchisees are prohibited from using the information for any other purpose. They cannot disclose, sell, distribute, or trade Cream's confidential information to anyone except employees and representatives who need it to assist in exercising development rights or operating the Scoop Shops, and the franchisee is responsible for any violations by those individuals.
Furthermore, franchisees are not allowed to make unauthorized copies of Cream's confidential information. This includes items such as real estate reports, training and operations manuals, System Standards, recipes, ingredient lists, market research, supplier information, proprietary software, operating results, customer data, and any other information designated as confidential by Cream. These restrictions are designed to protect Cream's trade secrets and maintain the integrity of the franchise system.
These types of restrictions on confidential information are standard practice in franchising to protect the brand and system. Prospective franchisees should carefully review the definition of Confidential Information in the Franchise Agreement and understand their obligations to protect it, as breaches can lead to significant penalties.