What does the Ben Jerrys agreement state regarding the reasonableness and necessity of the covenants and restrictions?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
restrictions in this Section 17 are (i) reasonable, appropriate and necessary to protect the System, confidential information, other franchisees operating under the System, the goodwill of the System, relationships with BEN & JERRY'S prospective and existing customers, and BEN & JERRY'S legitimate business interests; and (ii) do not cause undue hardship on OPERATOR or any of the other individuals and entities required by this Section 17 to comply with the covenants and restrictions.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the agreement specifies that the restrictions outlined in Section 17 are considered reasonable, appropriate, and necessary. These restrictions are in place to protect the Ben Jerrys system, including its confidential information, other franchisees, the goodwill associated with the brand, relationships with customers, and the company's legitimate business interests.
Furthermore, the agreement states that these restrictions should not cause undue hardship on the franchisee (referred to as OPERATOR) or any other individuals or entities required to comply with these covenants. This suggests that while Ben Jerrys aims to protect its business interests through these restrictions, it also considers the potential impact on its franchisees.
This clause aims to balance the protection of the Ben Jerrys brand and system with the operational freedom and potential hardships faced by franchisees. Prospective franchisees should carefully review Section 17 of the franchise agreement to fully understand the scope and implications of these restrictions and assess whether they could pose any undue hardship on their specific circumstances.