Can Ben Jerrys deny a transfer if the operator is in default of the Franchise Agreement?

According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben & Jerry's has the right to withhold consent for a transfer of interest if the operator and its affiliates are in default of any provision of the Franchise Agreement. This includes the failure to submit all reports that are current to the date of transfer, as required by Section 11.3.2, or any successor agreement. The operator and its affiliates must have substantially complied with all the terms and conditions of such agreements during their terms.

This means that if a Ben Jerrys franchisee is not in good standing with the company, they may not be able to sell or transfer their franchise to another party. This could have significant financial implications for the franchisee, as it could limit their ability to exit the business.

It is important for prospective Ben Jerrys franchisees to understand the conditions under which a transfer may be denied. Maintaining compliance with all aspects of the Franchise Agreement is crucial not only for the ongoing operation of the business but also for preserving the option to transfer the franchise in the future. Franchisees should pay close attention to reporting requirements and ensure they remain in good standing to avoid potential issues with transfer approval.