Are there any activities expressly prohibited by the Franchise Agreement that Cream cannot engage in within a franchisee's protected territory?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: TERRITORY]
(2) establish and operate, and allow others to establish and operate, any other type of business, including any business that may offer products and services which are identical to, similar to, or competitive with products and services offered by Jeni's Ice Creams Scoop Shops, under trade names, trademarks, service marks, and commercial symbols other than the Marks, anywhere in the world, including in the Protected Territory;
(3) establish, and allow others to establish, businesses and distribution channels other than a Jeni's Ice Creams Scoop Shop (including, selling products at retail, wholesale, or through any Digital Presence), wherever located or operating, including in your Protected Territory, regardless of the nature or location of the customers with whom such other businesses and distribution channels do business, including businesses that operate under trade names, trademarks, service marks, or commercial symbols that are similar to, the same, or competitive with the Marks, and/or that sell products or services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, including the offer and sale of Jeni's® -branded ice cream or products at third-party businesses;
(4) establish and operate, and allow others to establish and operate, any Jeni's Ice Creams Scoop Shop, or other business using the System, and/or offering and selling any of the products or services that are similar to, the same, or competitive with those products or services offered by Jeni's Ice Creams Scoop Shop, at or through any non-traditional venues, including, temporary or seasonal facilities or business operated within any larger venue or closed market such as an airport, hospital, or medical center, casino or gaming center, convention or business center, fairground, state, local, or national park, hotel or resort, military base, transportation or transit center, university, stadium, or entertainment center, at any location in the world, including in the Protected Territory;
(5) conduct marketing, advertising, and/or other promotional activities, events, and campaigns, at any location in the world, including in the Protected Territory, including events, activities, and campaigns that involve product giveaways and/or the offer and sale of products and services similar to and/or the same as those that Jeni's Ice Creams Scoop Shops sell, and/or using the Marks;
(6) be acquired by or acquire (regardless of the form of transaction(s)), any other business, including businesses that operate or allow others to establish and operate businesses similar to, the same, or competitive with Jeni's Ice Creams Scoop Shops, at any location in the world, including in the Protected Territory (and in the event of such an acquisition, we and/or the acquirer and its affiliates will have the right to continue to establish and operate, and authorize others to establish and operate, such businesses, at any location in the world, including in the Protected Territory); and
You may not engage in any promotional or similar activities, whether directly or indirectly, through any Digital Presence. You may not sell any Shop product or service through any alternative channel of distribution, including any Digital Presence.
Source: Item 12 — TERRITORY (FDD pages 35–39)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees are restricted from certain activities within their protected territory. Cream and its affiliates retain significant rights, even within a franchisee's protected territory. Specifically, Cream can establish and operate other types of businesses, including those offering similar or competitive products, under different trademarks. They can also establish businesses and distribution channels other than Cream Scoop Shops, such as retail sales, wholesale, or through any digital presence, regardless of the location of the customers.
Cream is also permitted to establish and operate Cream Scoop Shops or other businesses using the Cream system in non-traditional venues like airports, hospitals, casinos, convention centers, fairgrounds, parks, hotels, military bases, transportation centers, universities, stadiums, or entertainment centers, even within the protected territory. Additionally, Cream can conduct marketing, advertising, and promotional activities, including product giveaways and sales of similar products, within the franchisee's protected territory.
Furthermore, Cream or its affiliates have the right to be acquired by or acquire any other business, including those that are similar to or competitive with Cream, at any location, including within the protected territory. If such an acquisition occurs, Cream or the acquiring entity can continue to operate or authorize others to operate these businesses anywhere in the world, including within the franchisee's protected territory. However, franchisees may not engage in any promotional or similar activities, whether directly or indirectly, through any Digital Presence, nor sell any Shop product or service through any alternative channel of distribution, including any Digital Presence.
In summary, while Cream offers a protected territory, these protections are limited. Cream retains considerable freedom to operate and authorize other businesses, including competitors, within that territory. A prospective franchisee should carefully consider these limitations and how they might impact their business before investing in a Cream franchise.