What agreement must a transferee of a beneficial interest in the Ben Jerrys operator enter into?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferee of any owner of a beneficial interest in OPERATOR shall enter into a written agreement, in a form designated by BEN & JERRY'S, agreeing to be bound as an owner under the terms of this Agreement as long as such person or entity owns any interest in OPERATOR.
If the transferee is other than an individual, the owners of a beneficial interest in the transferee as BEN & JERRY'S may require, shall guarantee the performance of the transferee's obligations in writing in a form designated by BEN & JERRY'S.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a transferee of any owner of a beneficial interest in the Ben Jerrys operator must enter into a written agreement. This agreement, which must be in a form designated by Ben Jerrys, stipulates that the transferee agrees to be bound as an owner under the terms of the franchise agreement as long as they hold any interest in the Ben Jerrys operation.
This requirement ensures that all individuals with a financial stake in the Ben Jerrys franchise are legally obligated to adhere to the franchise agreement's terms. This protects Ben Jerrys's brand standards and operational consistency across all franchise locations.
Furthermore, if the transferee is not an individual, Ben Jerrys may require the owners of the beneficial interest in the transferee to guarantee the transferee's obligations in writing, using a form designated by Ben Jerrys. This provides an additional layer of security for Ben Jerrys, ensuring that the financial and operational responsibilities of the franchise are met, even if the direct operator is a corporate entity.