factual

Who bears the costs and expenses for Ben Jerrys' enforcement of Section 17?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

OPERATOR agrees to pay all costs and expenses (including reasonable attorneys' fees) incurred by BEN & JERRY'S in connection with the enforcement of this Section 17.

Source: Item 22 — CONTRACTS (FDD pages 133–134)

What This Means (2025 FDD)

According to Ben Jerrys' 2025 Franchise Disclosure Document, the franchisee, referred to as the 'OPERATOR,' is responsible for covering all costs and expenses, including reasonable attorneys' fees, that Ben Jerrys incurs while enforcing Section 17 of the franchise agreement. This means that if Ben Jerrys has to take legal action to ensure the franchisee complies with the covenants outlined in Section 17, the franchisee will be the one paying for it.

Section 17 likely contains covenants related to non-competition, confidentiality, or other obligations of the franchisee. The fact that the franchisee bears the enforcement costs underscores the importance of adhering to these covenants. Failure to comply could result in not only legal action but also the added financial burden of covering Ben Jerrys' legal expenses.

This arrangement is fairly common in franchising, as it incentivizes franchisees to uphold their contractual obligations and protects the franchisor's interests and brand standards. Prospective Ben Jerrys franchisees should carefully review Section 17 of the franchise agreement to fully understand their obligations and the potential financial consequences of non-compliance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.