Upon termination or expiration of the Cream agreement, what must you immediately cease doing?
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 the 2025 FDD, upon termination or expiration of the Cream Franchise Agreement, franchisees and their owners must immediately cease certain activities. Specifically, they must close their shop for business to customers and stop selling any products or services from the shop, or using Cream's marks, unless Cream directs otherwise in connection with exercising their option to purchase the shop.
Additionally, franchisees must immediately discontinue any direct or indirect use of Cream's marks, any imitation of those marks, any other indicators of a Cream shop, or any trade name, trademark, service mark, or other commercial symbol that suggests a connection with Cream or its system. The only exception to this is if the franchisee operates other Cream shops under a valid franchise agreement with Cream.
These restrictions are standard in franchising to protect the brand's integrity and prevent confusion among customers after a franchise agreement ends. Franchisees should carefully consider these post-termination obligations, as they significantly impact their ability to continue operating a similar business after leaving the Cream system. Understanding these limitations is crucial for planning future business ventures after the franchise term.