Does the Ben Jerrys agreement allow for any exceptions to the non-compete clauses, and if so, how are these exceptions approved?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2 BEN & JERRY'S may grant OPERATOR the right, but not the obligation, to engage in off-premises activities, including scooping at festivals, fairs, concerts, sporting events and other events ("Special Events"), scooping at customers' homes, offices, celebrations and other locations ("Catering") (hereinafter, Special Events and Catering are collectively referred to as "Off-Premises Activities"), delivery by third parties (e.g., Uber Eats, GrubHub and Door Dash) to customers' homes, offices and other locations ("On-Demand Sales"), and the scooping of Products from a mobile scooping facility such as a truck of trailer ("Mobile Vending") with such Off-Premises Activity, On-Demand Sales and Mobile Vending to be approved by BEN & JERRY'S as described below in Section 7.3.
All Off-Premises Activities, On-Demand Sales and Mobile Vending shall be subject to the terms stated in this Agreement and as may be set forth in BEN & JERRY'S Confidential Operating Manual (the "Manual"), which is more fully described in Section 9 hereof, or otherwise by BEN & JERRY'S in writing.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, franchisees may be granted the right to engage in off-premises activities that would otherwise be considered a breach of the standard non-compete clause. These activities include scooping at special events like festivals and concerts, catering at private locations, on-demand sales through third-party delivery services, and mobile vending using a truck or trailer. However, these "Off-Premises Activities, On-Demand Sales and Mobile Vending" require approval from Ben & Jerrys.
These exceptions are subject to the terms outlined in the Franchise Agreement, the Confidential Operating Manual, or other written directives from Ben & Jerrys. This means that while franchisees can potentially expand their sales beyond the traditional scoop shop, they must adhere to specific guidelines and obtain permission for these activities.
For a prospective Ben & Jerrys franchisee, this indicates that there are opportunities to increase revenue through non-traditional sales channels. However, it's crucial to understand the specific requirements and approval processes for these activities to ensure compliance with the franchise agreement. Franchisees should carefully review Section 7.3, as referenced in the document, to fully understand the conditions and limitations of these exceptions.