During and after the term of the Cream franchise agreement, who is prohibited from disparaging Cream or its affiliates?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
C. NON-DISPARAGEMENT.
During and after the Term, you and your owners agree not 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 not to): (1) disparage or otherwise speak or write negatively, directly or indirectly, of us, our affiliates, any of our or our affiliates' directors, officers, employees, representatives or affiliates, current and former franchisees of us or our affiliates, the Jeni's® brand, the System, any Jeni's Ice Creams Scoop Shop, any business using the Marks, or any other brand concept operated, licensed, or franchised by us or our affiliates; or (2) take any other action which would, directly or indirectly, subject any of the foregoing to ridicule, scandal, reproach, scorn, or indignity, or which would negatively impact or injure the goodwill of the System or the Marks. Notwithstanding anything to the contrary, in no event will you be prohibited from providing truthful testimony in connection with a legal proceeding or governmental investigation. In addition, nothing in this Agreement shall prohibit you from reporting a suspected violation of law to the appropriate governmental agency or authority.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, both during and after the franchise term, the franchisee and their owners are prohibited from disparaging Cream, its affiliates, or related parties. This prohibition extends not only to the franchisee and their owners but also to their current and former spouses, immediate family members, owners, officers, directors, employees, representatives, affiliates, successors, and assigns.
This means that a wide range of individuals connected to the franchisee are bound by this non-disparagement clause. The agreement requires the franchisee to actively ensure that these individuals do not speak or write negatively, directly or indirectly, about Cream, its affiliates, or related entities. This includes directors, officers, employees, representatives or affiliates, current and former franchisees of Cream or its affiliates, the Jeni's® brand, the System, any Jeni's Ice Creams Scoop Shop, any business using the Marks, or any other brand concept operated, licensed, or franchised by Cream or its affiliates.
The clause aims to protect Cream's reputation and goodwill by preventing negative statements that could subject the brand to ridicule, scandal, reproach, scorn, or indignity. However, there are exceptions. The non-disparagement clause does not prevent anyone from providing truthful testimony in a legal proceeding or governmental investigation, or from reporting a suspected violation of law to the appropriate governmental agency or authority. This ensures that franchisees and related parties can still participate in legal or regulatory processes without fear of violating the franchise agreement.
For a prospective Cream franchisee, this clause highlights the importance of ensuring that all individuals associated with their business understand and adhere to the non-disparagement requirement. Failure to do so could result in a breach of the franchise agreement and potential legal consequences. Franchisees should communicate this requirement clearly to their family members, employees, and business partners to avoid any unintentional violations.