Are there specific System Standards that a Cream franchisee must follow regarding Confidential Information?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
with making such changes, promoting a modified or substitute Mark, or for any loss of revenue due to any modification to the Marks or System.
6. PROPRIETARY INFORMATION.
A. CONFIDENTIALITY.
In connection with your Shop, you and your owners and personnel may from time to time be provided and/or have access to non-public information about the System and operation of Jeni's Ice Creams Scoop Shops, including your Shop (the "Confidential Information"), including: (1) site selection criteria, market or demographic research, and/or other real estate reports; (2) training and operations materials and manuals, including the Brand Manual; (3) the System Standards and other methods, formats, specifications, standards, systems, procedures, techniques, sales and marketing techniques, knowledge, and experience used in developing, promoting, and operating Jeni's Ice Creams Scoop Shops; (4) recipes, ingredient lists, nutrition facts, methods of preparation, and other information about products and menu items, including the existence or specifications of any seasonal or other unreleased products and menu items; (5) market research, promotional, marketing, and advertising programs for Jeni's Ice Creams Scoop Shops; (6) the identity or specifications of any of our required, approved, or designated suppliers, products, services; (7) any software or technology
which is proprietary to the System, including any login credentials for, source code of, and data, reports, and other materials generated by, the software or technology; (8) knowledge of the operating results and financial performance of any Jeni's Ice Creams Scoop Shops, including your Jeni's Ice Creams Scoop Shops; (9) customer data, including personal information, analytic data, and opt-in/optout preferences; and (10) any other information designated as confidential or proprietary by us or our affiliates.
All Confidential Information will be owned by us or our affiliates (other than Restricted Data, as defined in Section 8.K). You acknowledge and agree that: (i) you will not acquire any interest in any of our Confidential Information, other than the right to use it as we specify in operating your Shop during the Term, and (ii) 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 the development and operation of your Shop in accordance with this Agreement, 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 System 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 operating your Shop in accordance with this Agreement; 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 System Standards regarding confidential information. Cream defines confidential information as non-public details about the System and the operation of Cream Scoop Shops. This includes items such as site selection criteria, training materials (including the Brand Manual), System Standards, recipes, market research, supplier information, proprietary software, operating results, and customer data.
The System Standards mandate how franchisees process, retain, use, collect, and disclose confidential information. Franchisees are permitted to use this information only to the extent necessary for exercising their development rights and operating their Cream Scoop Shops, and must follow Cream's established privacy policies and instructions. Franchisees must keep the confidential information secure and are prohibited from disclosing, selling, distributing, or trading it to unauthorized parties. They are also barred from making unauthorized copies of the confidential information.
Cream retains ownership of all confidential information, except for personally identifiable information of the franchisee's personnel or other information designated by Cream. Franchisees acknowledge that the confidential information is proprietary and includes trade secrets, disclosed only under the condition that it is protected. Unauthorized use or disclosure is considered an unfair method of competition and a breach of trust, potentially causing irreparable harm to Cream. Franchisees must ensure that their owners, family members, employees, and representatives also comply with these confidentiality obligations.