What are the consequences if a Ben Jerrys operator loses the right to occupy the premises?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
15.2 Upon the occurrence of any of the following events of default, or upon the breach of any of the covenants listed in Section 17 of this Agreement, BEN & JERRY'S may, at its option, terminate this Agreement and all rights granted hereunder, without affording OPERATOR any opportunity to cure the default, effective immediately upon the provision of notice to OPERATOR (in the manner provided under Section 23 hereof):
15.2.2 If OPERATOR loses the right to occupy the Premises, or acts or fails, to act, in any manner which is inconsistent with or contrary to its lease or sublease for the Premises, or in any way jeopardizes its right to renewal of such lease or sublease;
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if an operator loses the right to occupy their Ben & Jerrys Scoop Shop premises, Ben & Jerrys has the option to terminate the Franchise Agreement immediately without any opportunity for the operator to correct the issue.
This loss of occupancy is considered a default under the agreement. Ben & Jerrys can terminate all rights granted to the operator upon providing notice. This means the franchisee would no longer be allowed to operate the Ben & Jerrys business.
This clause highlights the critical importance of maintaining a secure lease or sublease for the premises. A franchisee should carefully review their lease agreement and ensure compliance with all terms to avoid jeopardizing their right to occupy the space, as losing the premises can lead to an immediate termination of the Ben & Jerrys franchise.