What is the definition of 'On-Demand Sales' for a Ben Jerrys franchise?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2 BEN & JERRY'S may grant OPERATOR the right, but not the obligation, to engage in off-premises activities, including scooping at festivals, fairs, concerts, sporting events and other events ("Special Events"), scooping at customers' homes, offices, celebrations and other locations ("Catering") (hereinafter, Special Events and Catering are collectively referred to as "Off-Premises Activities"), delivery by third parties (e.g., Uber Eats, GrubHub and Door Dash) to customers' homes, offices and other locations ("On-Demand Sales"), and the scooping of Products from a mobile scooping facility such as a truck of trailer ("Mobile Vending") with such Off-Premises Activity, On-Demand Sales and Mobile Vending to be approved by BEN & JERRY'S as described below in Section 7.3.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to the 2025 Ben Jerrys Franchise Disclosure Document, On-Demand Sales are defined as delivery by third parties (e.g., Uber Eats, GrubHub, and Door Dash) to customers' homes, offices, and other locations.
This means that Ben Jerrys franchisees have the option, but not the obligation, to utilize third-party delivery services to reach customers beyond the physical scoop shop location. This can significantly expand the potential customer base and revenue streams for a franchisee. However, participation in On-Demand Sales is subject to approval by Ben Jerrys and must comply with the terms outlined in the Franchise Agreement and the Confidential Operating Manual.
Ben Jerrys retains certain rights regarding On-Demand Sales, including the right to approve or deny participation and to set the terms and conditions for such sales. The franchisee must adhere to Ben Jerrys's standards and specifications for these activities, including guidelines related to insurance coverage and vehicle use. Furthermore, if a franchisee wishes to conduct On-Demand Sales outside of their designated territory, they must obtain prior written approval from Ben Jerrys.
It's important to note that while the Franchise Agreement grants the right to engage in On-Demand Sales, it does not grant any protected territory for these activities. Ben Jerrys reserves the right to establish or license other shops, including those offering delivery services, in any location except the franchisee's authorized location. This means that a franchisee's On-Demand Sales efforts could potentially face competition from other Ben Jerrys locations or licensees.