What is the consequence if an operator of a Ben Jerrys franchise is in default with an approved supplier?

According to Ben Jerrys's 2025 Franchise Disclosure Document, if a franchisee has past due monetary obligations to the approved suppliers of the Ben Jerrys system, this can impact their ability to transfer their franchise. Specifically, Ben Jerrys may prevent a transfer if the operator or their affiliates have outstanding debts to approved suppliers.

Ben Jerrys requires that to approve a transfer, the operator and its affiliates must not have any past due monetary obligations or other outstanding obligations to the approved suppliers of the Ben & Jerry's system. This requirement ensures that the franchisee is in good financial standing with those suppliers before a transfer can proceed.

This condition protects Ben Jerrys and its approved suppliers by ensuring that any outstanding debts are addressed before a new franchisee takes over. For a prospective franchisee, this highlights the importance of maintaining good relationships and fulfilling financial obligations with approved suppliers to avoid complications when seeking to transfer the franchise in the future.