Does compliance with the Development Schedule affect my territorial protection with Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
Your territorial protection is not dependent upon achievement of a certain sales volume, market penetration, or other factors, other than compliance with the Development Agreement and Development Schedule.
Our Reserved Rights (Franchise Agreement and Development Agreement): Under the Franchise Agreement and Development Agreement, we and our affiliates retain all the rights that we do not specifically grant to you. Among the rights that we retain are the following (the following list is only for purposes of illustration and is not meant to limit our rights):
- (1) We may own, acquire, establish, and/or operate and license others to establish and operate businesses, including Shops operating under the Proprietary Marks and the System selling the Products at any location outside your Territory or Development Area regardless of their proximity to, or potential impact on, your Territory or Development Area or Shops.
Source: Item 12 — TERRITORY (FDD pages 60–64)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if you sign a Development Agreement, your territorial protection is directly tied to compliance with both the Development Agreement and the Development Schedule. Ben Jerrys will not establish or operate, nor franchise anyone else to do so, within your Deposit Area as long as you meet your obligations under these agreements. This protection lasts until the Development Agreement expires or Ben Jerrys authorizes a site for your Shop within that Deposit Area. Once a site is authorized, that specific Deposit Area is no longer part of your protected Development Area.
This means that adhering to the Development Schedule is crucial for maintaining your exclusive rights to develop Ben Jerrys shops within your agreed-upon Development Area. Failure to comply with the Development Agreement and Development Schedule could result in Ben Jerrys establishing or franchising other shops within your area, directly competing with your potential locations.
It's important to note that your territorial protection isn't based on sales volume, market penetration, or other performance metrics, but solely on your adherence to the Development Agreement and Development Schedule. This places a significant emphasis on meeting the development milestones outlined in those documents to secure your territorial rights.