What is the definition of a 'Competitive Business' according to the Ben Jerrys agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, if BEN & JERRY'S does not elect to exercise the option to acquire the lease/sublease, OPERATOR shall comply with Section 17.4.2 below regarding a Competitive Business, as defined in Section 17.3.2 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
Based on the 2025 Ben & Jerry's Franchise Disclosure Document, the definition of 'Competitive Business' is referenced in Section 17.3.2 of the franchise agreement. However, the provided excerpts do not include the specific text of Section 17.3.2, so the exact definition is not available.
However, the FDD does state that if Ben & Jerry's does not elect to acquire the lease/sublease, the franchisee must comply with Section 17.4.2 regarding a Competitive Business, as defined in Section 17.3.2 of the Agreement. This implies that the definition of 'Competitive Business' is relevant in the context of the franchisee potentially operating a competing business after the termination or transfer of the Ben & Jerry's franchise.
To fully understand the restrictions and obligations, a prospective Ben & Jerry's franchisee should carefully review Section 17.3.2 of the franchise agreement within the complete FDD. They should also discuss with Ben & Jerry's the specific activities that would be considered operating a 'Competitive Business' and the implications for their future business endeavors after the franchise term.