factual

What specific rights does a Cream franchisee have regarding the use of Confidential Information?

Cream Franchise · 2025 FDD

Answer 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 have limited rights regarding the use of confidential information. Cream or its affiliates own all confidential information, except for personally identifiable information relating to the franchisee's employees, officers, contractors, owners, or other personnel, and/or such other personally identifiable information designated by Cream from time to time.

The franchisee's rights are restricted to using the confidential information as specified by Cream in the Franchise Agreement. This use must align with exercising development rights and operating Jeni's Ice Creams Scoop Shops under the terms of the agreement. Franchisees do not acquire any other interest in Cream's confidential information beyond this limited usage right.

Cream's FDD emphasizes that unauthorized use or disclosure of confidential information would be an unfair method of competition and a breach of trust, potentially causing irreparable harm to Cream and its affiliates. Franchisees are responsible for ensuring that their owners, employees, representatives, and even family members adhere to these confidentiality obligations. This includes processing, retaining, using, collecting, and disclosing confidential information strictly for the purposes outlined in the agreement and in accordance with Cream's privacy policies and standards. Franchisees must also prevent unauthorized copying, selling, distribution, or trading of confidential information.

This tight control over confidential information is typical in franchising to protect trade secrets and maintain brand consistency. Prospective Cream franchisees should carefully review the definition of "Confidential Information" in the Franchise Agreement to understand the full scope of these restrictions and their obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.