What actions must a Ben Jerrys developer take upon termination or nonrenewal of the Development Agreement, as outlined in Section 6.4?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. Term of the | Exhibit A | Last date in Development | |
| agreement | Schedule | ||
| b. Renewal or | Not applicable | Not applicable | |
| extension of the | |||
| term | |||
| c. Requirements for | Not applicable | Not applicable | |
| you to renew or | |||
| extend | |||
| d. Termination by | Not applicable | Not applicable | |
| you | |||
| e. Termination by | Not applicable | Not applicable | |
| us without cause | |||
| f. | Termination by | § 6 | We can terminate if you default. |
| us with cause | |||
| g. "Cause" defined - curable defaults | § 6.3 | All other defaults not specified in §§ 6.1 and 6.2 of Development Agreement. | |
| h. "Cause" defined - non-curable defaults | §§ 6.1 and 6.2 | Bankruptcy; failure to meet requirements of Development Schedule; failure to comply with any individual Franchise Agreement for a Scoop Shop operated by you or a person or entity affiliated with you. | |
| i. | Your obligations on termination/ nonrenewal | § 6.4 | Cease establishing or operating Scoop Shops under the System for which Franchise Agreements have not been signed at the time of termination and compliance with covenants. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 68–76)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Section 6.4 of the Development Agreement outlines the obligations of the developer upon termination or nonrenewal. Specifically, the developer must cease establishing or operating Scoop Shops under the Ben Jerrys system for which Franchise Agreements have not been signed at the time of termination. Additionally, the developer must comply with all covenants outlined in the agreement.
In practical terms, this means that if a Development Agreement is terminated or not renewed, the developer cannot continue to open new Ben Jerrys locations that were planned but not yet under a fully executed Franchise Agreement. This prevents the developer from expanding the Ben Jerrys footprint beyond what was already contractually agreed upon before the termination.
The requirement to comply with covenants is a standard protective measure for Ben Jerrys. These covenants likely include non-compete clauses, confidentiality agreements, and other provisions designed to protect Ben Jerrys's brand and business interests. A prospective franchisee should carefully review the Development Agreement to fully understand the scope of these covenants and their implications after termination or nonrenewal.