What is the consequence of performing an act that is injurious to the goodwill associated with Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 15.2.6 If OPERATOR or other party covered by Section 14 above purports to transfer any rights or obligations under this Agreement, or any interest in OPERATOR, the Scoop Shop, or the assets of the franchised business to any third party in a manner that is contrary to the terms of Section 14 hereof;
- 15.2.7 If OPERATOR maintains false books or records, or knowingly submits any false statements or reports to BEN & JERRY'S;
- 15.2.8 If, contrary to the terms of Sections 9 or 10 hereof, OPERATOR discloses or divulges the contents of the Manual or other confidential information provided to OPERATOR by BEN & JERRY'S;
- 15.2.9 If OPERATOR or any of its Owners misuses or makes any unauthorized use of the Proprietary Marks or any other identifying characteristics of the System, or otherwise
operates the Scoop Shop in a manner, or engages in any other conduct (including activities and communications with customers, suppliers, landlords, other franchisees or third parties), that BEN & JERRY'S determines to be injurious or prejudicial to the reputation or goodwill a
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if a franchisee operates their Scoop Shop in a manner, or engages in any conduct, that Ben Jerrys determines to be injurious or prejudicial to the reputation or goodwill associated with the System, Proprietary Marks, Ben & Jerry's Products, or the rights of Ben Jerrys therein, it constitutes an event of default.
Upon the occurrence of such an event of default, Ben Jerrys has the option to terminate the Franchise Agreement and all rights granted to the franchisee. This termination can be immediate upon providing notice to the franchisee, without affording the franchisee any opportunity to cure the default.
This means that Ben Jerrys franchisees must be extremely careful in how they operate their business and interact with customers, suppliers, and the public. Any actions deemed harmful to the brand's reputation, even if unintentional, could lead to the immediate loss of their franchise. This highlights the importance of adhering to Ben Jerrys's standards and guidelines to protect the brand's image and avoid potential termination.