What is the amount of the non-refundable Preliminary Agreement Deposit required for new Ben Jerrys franchisees?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
ere is no bankruptcy information required to be disclosed in this Item.
ITEM 5 INITIAL FEES
Preliminary Agreement Deposit
If you will operate a Scoop Shop (which is not developed and operated under a Development Agreement), you will sign a Preliminary Agreement before you sign the Franchise Agreement. When you sign the Preliminary Agreement, you must pay us a non-refundable deposit (the "Preliminary Agreement Deposit"), which will be applied to your initial franchise fee. For new franchisees, the Preliminary Agreement Deposit will be $10,000; for existing franchisees, the Preliminary Agreement Deposit will be $5,000. You must locate a site during the "Evaluation Period," which is a period of twelve (12) months from the signing of the Preliminary Agreement. You may request up to two (2) six-month extensions of the Evaluation Period – each extension will be for an additional six-month period. A request for an extension of the Evaluation Period must be made to us, in writing, at least thirty (30) days prior to the expiration of the then-current Evaluation Period.
We do not require you to sign a Preliminary Agreement if you are an existing fran
Source: Item 5 — INITIAL FEES (FDD pages 20–23)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, new franchisees who will operate a Scoop Shop and are not developing it under a Development Agreement must sign a Preliminary Agreement before signing the Franchise Agreement. Upon signing the Preliminary Agreement, the franchisee must pay a non-refundable Preliminary Agreement Deposit. For new Ben Jerrys franchisees, this deposit is $10,000. For existing franchisees, the deposit is $5,000. This deposit will be applied to the initial franchise fee.
The franchisee has an "Evaluation Period" of twelve months from signing the Preliminary Agreement to locate a site. They can request up to two six-month extensions to this period, each extending the period by six months. The request must be made in writing at least thirty days before the current Evaluation Period expires.
It is important to note that the Preliminary Agreement is not required for existing franchisees opening additional locations or those entering into a franchise agreement in connection with a Development Agreement with Ben Jerrys. This deposit is non-refundable, so prospective franchisees should carefully consider their ability to find a suitable location within the given timeframe before signing the Preliminary Agreement.