What is the definition of 'Deposit Area' in the Ben Jerrys agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Scoop Shop to be developed hereunder shall be located in the areas described in Exhibit B to this Agreement (each individual area is a "Deposit Area"), and shall be established and operated pursuant to a separate Franchise Agreement to be entered into between DEVELOPER and BEN & JERRY'S.
The Deposit Areas shall, collectively, comprise the "Development Area;" provided, however, that as of the date on which a site for a Scoop Shop to be developed within a Deposit Area is approved by BEN & JERRY'S, as set forth in this Agreement, such Deposit Area shall cease to be part of the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a Deposit Area is defined as an individual area described in Exhibit B of the Development Agreement where a Scoop Shop is to be developed. These Deposit Areas collectively form the Development Area.
However, once Ben Jerrys approves a site for a Scoop Shop within a Deposit Area, that specific Deposit Area is no longer considered part of the overall Development Area. This distinction is important because it affects the developer's exclusive rights within the Development Area.
Specifically, Ben Jerrys agrees not to establish or license others to establish a Ben Jerrys shop within the Development Area, as long as the developer complies with their obligations. However, this exclusivity does not extend to Deposit Areas where a Scoop Shop site has already been approved. Ben Jerrys retains the right to operate or license shops outside the Development Area.