Under what trade names can Cream operate competing businesses within the Development Area?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
an>The Development Rights may only be exercised for Jeni's Ice Creams Scoop Shops to be located in the Development Area. As long as you are in compliance with this Agreement and all Franchise Agreements (defined below) signed pursuant to this Agreement, and except as set forth in this Section 1.D, we will not, during the Term, operate or grant the right to anyone else to operate a Jeni's Ice Creams Scoop Shops within the Development Area, or grant Development Rights to anyone else to be exercised with your Development Area.
For the avoidance of doubt, we reserve for ourselves and our affiliates all rights not expressly granted to you in this Agreement and the right to do all things that we do not expressly agree in this Agreement not to do, in each case, without compensation to you, without regard to proximity to your Development Area, and on such terms and conditions as we deem appropriate.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream and its affiliates retain the right to operate other types of businesses, including those that offer products and services identical, similar, or competitive with Cream shops, within the Development Area. These businesses can operate under trade names, trademarks, service marks, and commercial symbols other than the "Jeni's® " name and marks. This means that while Cream grants you development rights for Jeni's Ice Creams Scoop Shops within your designated area, they reserve the right to introduce competing concepts under different branding.
This reservation of rights extends to various business activities. Cream can establish businesses and distribution channels beyond traditional scoop shops, such as retail, wholesale, or online sales, even if they compete with your franchise. They can also establish Jeni's Ice Creams Scoop Shops or other businesses in non-traditional venues like airports, hospitals, casinos, or universities within your Development Area. Furthermore, Cream can conduct marketing and promotional activities, including product giveaways, that might compete with your shop.
Cream also retains the right to be acquired by or acquire other businesses, including those that compete with Jeni's Ice Creams Scoop Shops. In such cases, Cream or the acquiring entity can continue to operate these competing businesses within your Development Area. Essentially, Cream maintains broad rights to engage in any business activity not expressly prohibited in the franchise agreement, even if it competes with your franchise.
For a prospective franchisee, this means that while you are granted certain development rights, Cream retains significant flexibility to operate competing businesses within your Development Area under different brand names. This could potentially impact your market share and profitability. It is crucial to carefully consider this aspect and discuss with Cream how they plan to manage potential conflicts and support franchisee success in such scenarios.