factual

Does Ben Jerrys' consent to a transfer waive any claims it may have against the transferring party?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 14.8 The consent of BEN & JERRY'S to any transfer pursuant to this Section 14 shall not constitute a waiver of any claims it may have against the transferring party, nor shall it be a waiver of the right of BEN & JERRY'S to demand exact compliance with any of the terms of this Agreement by the transferor or transferee.

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

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys's consent to a transfer does not constitute a waiver of any claims it may have against the transferring party. Additionally, Ben Jerrys's consent does not waive its right to demand exact compliance with the terms of the agreement from either the transferor or the transferee. This means that even if Ben Jerrys approves a franchise transfer, it retains all rights to pursue any existing claims against the seller and to enforce the franchise agreement against both the seller and the buyer.

This provision protects Ben Jerrys's interests by ensuring that it does not lose any legal recourse simply by approving a transfer. For a prospective franchisee, this highlights the importance of due diligence when buying an existing Ben Jerrys franchise. The buyer should ensure that the seller is in full compliance with the franchise agreement and that there are no outstanding claims or disputes with Ben Jerrys.

Furthermore, the new franchisee will be held to the same standards of compliance as the previous owner. This clause is fairly standard in franchise agreements, as franchisors need to maintain consistent standards across all locations to protect their brand and reputation. Therefore, potential franchisees should carefully review the franchise agreement and any related documents to understand their obligations and potential liabilities when taking over an existing Ben Jerrys franchise.

In summary, Ben Jerrys retains its rights and ability to enforce the franchise agreement, regardless of whether it consents to a transfer. Franchisees need to be aware of this and conduct thorough due diligence before acquiring a franchise to avoid inheriting any unresolved issues.

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.