What is the definition of 'Development Area' in the Ben Jerrys Development Agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign a Development Agreement, the Development Agreement will specify the Deposit Areas (together the "Development Area"), within which you may locate potential sites for Scoop Shops, subject to our approval. The size and scope of the Deposit Areas comprising the Development Area will be contained in the Development Agreement and will be determined on a case-by-case basis. The factors that we consider in determining the size of a Development Area include current and projected market demand, demographics and population, traffic patterns, location of other Scoop Shops, the financial and other capabilities of the developer, and our development plans. During the term of the Development Agreement, if you comply with the obligations under the Development Agreement and Development Schedule, we will not establish or operate, nor franchise anyone other than you to establish or operate, Shops in a Deposit Area until the earlier to occur of the expiration of the Development Agreement or our authorization of a site for your Shop within that Deposit Area, except as may be permitted under the Development Agreement and those exceptions are described below. At the time we authorize a site for a Shop within a Deposit Area, that Deposit Area will cease to be part of the Development Area. There are no circumstances under which the Development Agreement may be altered prior to expiration or termination of the Development Agreement. Your territorial protection is not dependent upon achievement of a certain sales volume, market penetration, or other factors, other than compliance with the Development Agreement and Development Schedule.
Source: Item 12 — TERRITORY (FDD pages 60–64)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a Development Area is defined within the Development Agreement as comprising multiple 'Deposit Areas' where a developer can propose locations for Scoop Shops, subject to Ben Jerrys's approval. The Development Agreement specifies these Deposit Areas, and their size and scope are determined on a case-by-case basis. Ben Jerrys considers factors such as market demand, demographics, population, traffic patterns, existing Scoop Shop locations, the developer's financial capabilities, and Ben Jerrys's development plans when determining the size of a Development Area.
During the term of the Development Agreement, Ben Jerrys agrees not to establish or franchise other entities to operate Shops within a Deposit Area, provided the developer complies with the obligations and development schedule outlined in the agreement. This protection lasts until the Development Agreement expires or Ben Jerrys authorizes a site for the developer's Shop within that Deposit Area. Once a site is approved, that Deposit Area is no longer part of the Development Area.
It is important to note that the Development Agreement cannot be altered before its expiration or termination. The franchisee's territorial protection within the Development Area is contingent upon compliance with the Development Agreement and the Development Schedule, not on factors like sales volume or market penetration. This means that as long as the franchisee meets the obligations outlined in the agreement, Ben Jerrys will not establish or franchise other shops in the Deposit Area.