According to the Ben Jerrys FDD, what constitutes the Development Area?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Scoop Shop to be developed hereunder shall be located in the areas described in Exhibit B to this Agreement (each individual area is a "Deposit Area"), and shall be established and operated pursuant to a separate Franchise Agreement to be entered into between DEVELOPER and BEN & JERRY'S.
The Deposit Areas shall, collectively, comprise the "Development Area;" provided, however, that as of the date on which a site for a Scoop Shop to be developed within a Deposit Area is approved by BEN & JERRY'S, as set forth in this Agreement, such Deposit Area shall cease to be part of the Development Area.
1.2 Except as otherwise provided in this Agreement (including the rights retained by BEN & JERRY'S and its affiliates as described in Section 1.3), during the term of this Agreement, and so long as DEVELOPER is in compliance with its obligations under this Agreement, BEN & JERRY'S shall not establish or operate, or license any person to establish or operate, a Ben & Jerry's Shop under the Proprietary Marks and System at any location within the Development Area.
1.3 BEN & JERRY'S and its affiliates retain the rights, among others, on any terms and conditions BEN & JERRY'S deem advisable, and without granting DEVELOPER any rights therein:
1.3.1 To acquire, be acquired by, own, establish and/or operate, and license others to establish and operate, businesses under the Proprietary Marks and the System at any location outside of the Development Area;
1.3.2 To own, acquire, establish, and/or license others to establish and operate businesses, including those under the Proprietary Marks, selling the Products at any location outside the Development Area;
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the Development Area is initially comprised of multiple Deposit Areas, as detailed in Exhibit B of the Development Agreement. Each Deposit Area is a specific location where the developer has the right to establish a Ben Jerrys Scoop Shop. However, once Ben Jerrys approves a site for a Scoop Shop within a Deposit Area, that specific Deposit Area is no longer considered part of the overall Development Area.
Ben Jerrys grants the developer certain exclusive rights within the Development Area. Specifically, Ben Jerrys agrees not to establish or operate, nor license others to establish or operate, a Ben Jerrys shop under its trademarks and system within the Development Area, as long as the developer complies with their obligations under the Development Agreement. This exclusivity is subject to certain exceptions, as Ben Jerrys retains specific rights.
Ben Jerrys reserves the right to operate or license businesses outside the Development Area without granting the developer any rights. This includes the right to establish businesses selling Ben Jerrys products under its trademarks. This means a Ben Jerrys developer's exclusive rights are limited to the defined Development Area and do not extend to other locations or territories that Ben Jerrys may choose to develop independently.
Prospective Ben Jerrys developers should carefully review Exhibit B of the Development Agreement to understand the exact geographic boundaries of the Deposit Areas and the Development Area. They should also be aware that the Development Area shrinks as sites are approved and that Ben Jerrys retains significant rights to operate or license businesses outside of the Development Area.