Are there any activities expressly prohibited to Cream within a Jeni's Ice Creams franchisee's protected territory?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to your continued compliance with this Agreement, and the reserved rights described below, during the Term, neither we nor any of our affiliates will establish, operate, or authorize any other person to establish or operate a Jeni's Ice Creams Scoop Shop in the area described in Attachment C (the "Protected Territory"). If you have not selected a site for your Shop as of the Effective Date, we will identify the Protected Territory once you sign your approved Lease, as described in Section 2.B below. Until such time as we execute Attachment C to identify an approved Premises and Protected Territory for your Shop, you do not have a Protected Territory and/or any other territorial protection of any kind, including in the Site Selection Area and/or any other area surrounding your Premises.
Other than your Protected Territory, you have no territorial protection and we and our affiliates retain all rights to conduct business activities of any kind, including the right to:
(1) establish and operate, and allow others to establish and operate, other Jeni's Ice Creams Scoop Shops using the Marks and the System, at any location outside the Protected Territory, on such terms and conditions we deem appropriate;
(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, as defined in Section 5.B), 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 Marks and/or 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;
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream FDD, Jeni's Ice Creams, including its affiliates, retains significant rights within a franchisee's protected territory. Specifically, Jeni's Ice Creams is not restricted from establishing or operating other types of businesses, even those offering products or services identical or similar to those of Jeni's Ice Creams Scoop Shops, as long as they operate under different trade names and trademarks. This means that while Jeni's Ice Creams cannot open another Jeni's Ice Creams Scoop Shop within the franchisee's protected territory, they can operate a similar ice cream business under a different brand.
Furthermore, Jeni's Ice Creams is permitted to establish businesses and distribution channels beyond traditional Scoop Shops, such as retail, wholesale, or online sales, within the franchisee's protected territory. They can also conduct marketing and promotional activities, including product giveaways, within the protected territory. Additionally, Jeni's Ice Creams can establish and operate Jeni's Ice Creams Scoop Shops or similar businesses in non-traditional venues like airports, hospitals, casinos, or universities, even within the franchisee's protected territory.
These stipulations mean that a Cream franchisee's protected territory offers limited protection against competition from the franchisor itself. The franchisee's protection is essentially limited to preventing Jeni's Ice Creams from opening another Scoop Shop under the same brand within the defined area. However, Jeni's Ice Creams retains the right to engage in various activities that could directly compete with the franchisee's business, potentially impacting their revenue and market share. A prospective franchisee should carefully consider these limitations and evaluate the potential impact of such competition on their investment.