What standards must Cream franchisees follow when processing 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 must adhere to specific standards when handling confidential information. Cream or its affiliates own all confidential information, excluding personally identifiable information of the franchisee's personnel or other information designated by Cream. Franchisees acknowledge they do not acquire any interest in Cream’s confidential information, other than the right to use it as specified in the agreements. This information is proprietary and includes trade secrets, disclosed only under the condition that franchisees protect it. Unauthorized use or disclosure is considered an unfair method of competition and a breach of trust, resulting in irreparable harm to Cream and its affiliates.
Cream requires franchisees, their owners, and related parties to process, retain, use, collect, and disclose confidential information strictly to the extent necessary for exercising development rights or operating Jeni's Ice Creams Scoop Shops. This must be done in accordance with privacy policies, standards established by Cream, and any instructions provided by Cream or its representatives. Franchisees must keep the confidential information secure and not disclose, sell, distribute, or trade it to anyone except employees and representatives who need the information to assist in exercising development rights or operating the Scoop Shops. Franchisees are responsible for any violations of this requirement by those they provide confidential information to.
Additionally, franchisees are prohibited from making unauthorized copies of Cream’s confidential information. This includes, but is not limited to, items such as real estate reports, training and operations materials, System Standards, recipes, market research, supplier information, proprietary software, operating results, customer data, and any other designated confidential information. These standards ensure the protection of Cream’s proprietary information and maintain the integrity of the franchise system. Franchisees must understand that failure to comply with these standards can lead to significant legal and financial repercussions.