After termination, can a Cream franchisee continue to use the Cream Marks if directed by the franchisor?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, you and your owners must immediately:
- (1) close your Shop for business to customers and cease to directly or indirectly sell any products and services of any kind and in any manner from your Shop and/or using the Marks, unless we direct you otherwise in connection with our exercise of our option to purchase pursuant to Section 15.D;
- (2) cease to directly or indirectly use any Mark, any colorable imitation of a Mark, other indicia of a Jeni's Ice Creams Scoop Shop, or any trade name, trademark, service mark, or other commercial symbol that indicates or suggests a connection or association with us or the System, in any manner or for any purpose (except in connection with other Jeni's Ice Creams Scoop Shops you operate in compliance with the terms of a valid Franchise Agreement with us);
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee must cease using Cream's marks upon termination or expiration of the franchise agreement. However, there is an exception: if Cream directs the franchisee otherwise in connection with Cream's exercise of its option to purchase the shop. This means that in the specific case where Cream is considering buying back the franchise location, they might allow the franchisee to continue using the marks temporarily.
Specifically, upon termination or expiration, the franchisee must close their shop to customers and cease selling products or services using Cream's marks, unless Cream directs otherwise in connection with their option to purchase the shop. The franchisee must also stop using any mark, imitation of a mark, or other commercial symbol that suggests a connection with Cream.
Furthermore, the franchisee must cease identifying their business as a current or former Cream Scoop Shop and cancel any registrations related to the use of Cream's marks. If Cream does not exercise its option to purchase the shop, the franchisee must alter the shop to distinguish it from other Cream locations, including removing all materials and signage bearing Cream's marks. These obligations ensure that the brand's identity is protected and that customers are not confused after a franchise agreement ends.