Is the deposit required by Ben Jerrys refundable?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. PROSPECTIVE OPERATOR has applied to BEN & JERRY'S for the right to enter into a franchise under the System through a Ben & Jerry's Franchising, Inc. Franchise Agreement (the "Franchise Agreement"), that would give PROSPECTIVE OPERATOR the right and obligation to develop and operate a Scoop Shop at a specific location (the "Shop").
- C. BEN & JERRY'S must expend considerable time, effort, and cost during the twelve (12)-month evaluation perio
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the deposit required during the evaluation period is non-refundable. The document states that the prospective operator delivers to Ben Jerrys a non-refundable deposit as evidence of good faith during the evaluation period.
For prospective Ben Jerrys franchisees, this means that the initial deposit, $10,000 for new operators or $5,000 for existing operators, is not returned, regardless of whether the franchise agreement is ultimately signed. This non-refundable deposit covers the time, effort, and costs Ben Jerrys incurs during the twelve-month evaluation period to assess site proposals and designs submitted by the prospective operator.
This policy is a risk for the prospective franchisee, as they will not get this money back even if they decide not to proceed with the franchise or if Ben Jerrys does not approve their site. It is important for prospective franchisees to carefully consider their interest in the franchise and the likelihood of site approval before paying the deposit.