What is Cream's stance on unauthorized use or disclosure of Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the development and operation of your Shop in accordance with this Agreement, 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 System 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 operating your Shop in accordance with this Agreement; 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;
- (e) adopt and maintain administrative, physical, and technical safeguards to prevent unauthorized use or disclosure of any of our Confidential Information, including by establishing reasonable security and access measures, restricting its disclosure to key personnel, and/or by requiring persons who have access to such Confidential Information to be bound by contractual obligations to protect such Confidential Information and preserve our rights and controls in such Confidential Information, in each case that are no less protective or beneficial to us than the terms of this Agreement (and we reserve the right to designate or approve the form of confidentiality agreement that you use, provided that it is your responsibility to ensure that such agreement complies with and is enforceable under applicable laws in your jurisdiction); and
- (f) at our request, destroy or return any of the Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream takes unauthorized use or disclosure of its Confidential Information very seriously. Cream considers any unauthorized use or disclosure an unfair method of competition and a breach of trust, which would result in irreparable harm to Cream and its affiliates.
To protect this information, Cream requires franchisees and their personnel, including family members, to adhere to strict guidelines. These guidelines include processing, retaining, using, collecting, and disclosing Confidential Information only to the extent necessary for operating the Cream shop and in accordance with Cream's privacy policies and standards. Franchisees must also keep the information confidential and limit its disclosure to employees and representatives who need it to assist in the shop's operation. Franchisees are responsible for any violations of these requirements by anyone they provide Confidential Information to.
Cream also mandates that franchisees adopt and maintain safeguards to prevent unauthorized use or disclosure, such as security measures and confidentiality agreements for personnel. Franchisees must also refrain from making unauthorized copies of Confidential Information and, at Cream's request, either destroy or return any of the Confidential Information. These measures highlight the importance Cream places on protecting its proprietary information and the potential legal and financial repercussions for franchisees who fail to comply.