When does the Ben Jerrys Developer Agreement commence?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
to all of the terms and conditions of this Agreement.
4. FRANCHISE FEES FOR SCOOP SHOP DEVELOPMENT
- 4.1 In consideration of the development rights granted herein, DEVELOPER shall pay to BEN & JERRY'S the following initial franchise fees for each Scoop Shop to be developed, as set forth in the Development Schedule in the following manner:
- 4.1.1 If, as indicated in Section 2 of Exhibit A to this Agreement, DEVELOPER is already a franchisee under the System prior to the time of execution of this Agreement ("Existing Operator"), then initial franchisee fees for each Scoop Shop to be developed under this Agreement shall be in the amounts and paid as follows:
First shop $19,750
Second and additional shop $16,000
4.1.2 If, as indicated in Section 2 to Exhibit A to this Agreement, DEVELOPER is not already a franchisee under the System prior to the execution of this Agreement ("New Operator"), then the initial franchisee fees for each Scoop Shop to be developed under this Agreement shall be in the amounts and paid as follows:
First shop $39,500
Second and additional shop $19,750
- 4.2 Upon execution of this Agreement, DEVELOPER shall pay a development fee as follows ("Development Fee"):
- 4.2.1 If DEVELOPER is an Existing Operator, the Development Fee shall be equal to $10,000 for the first Scoop Shop to be developed under this Agreement, in addition to $5,000 for each additional Scoop Shop specified in the Development Schedule.
- 4.2.2 If DEVELOPER is a New Operator, the Development Fee shall be equal to $15,000 for the first Scoop Shop to be developed under this Agreement, in addition to $7,500 for each additional Scoop Shop specified in the Development Schedule.
- 4.3 DEVELOPER acknowledges and agrees that the Development Fee is fully earned and nonrefundable in consideration of administrative and other expenses incurred by BEN & JERRY'S, even in the event that DEVELOPER does not enter into a Franchise Agreement for any Scoop Shop.
- 4.4 As to each Scoop Shop to be established in the Developmen
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
Based on the 2025 Ben Jerrys Franchise Disclosure Document, the commencement date of the Developer Agreement is not explicitly stated within the provided excerpts. However, the document outlines several key events and obligations that occur upon the execution of the agreement.
Specifically, upon executing the Development Agreement, the developer is obligated to pay a Development Fee. The amount varies depending on whether the developer is an Existing Operator ($10,000 for the first Scoop Shop plus $5,000 for each additional shop) or a New Operator ($15,000 for the first Scoop Shop plus $7,500 for each additional shop). This fee is deemed fully earned and nonrefundable by Ben Jerrys, covering administrative and other expenses, even if the developer does not proceed with opening a Scoop Shop.
Furthermore, the developer must adhere strictly to the Development Schedule outlined in the agreement, acknowledging that time is of the essence. This schedule requires the developer to execute and deliver Franchise Agreements and open a specified number of Scoop Shops within defined time periods. The developer is also responsible for locating and submitting potential sites for Scoop Shops, providing Ben Jerrys with a site evaluation package (SEP) for approval.
To gain a clear understanding of when the Ben Jerrys Developer Agreement officially commences, a prospective franchisee should directly ask the franchisor for clarification. Understanding the precise start date is crucial, as it triggers various obligations and deadlines for the developer.