What is the DEVELOPER obligated to do regarding the Development Schedule with Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
a; and
- 1.3.7.5 through delivery, mail order, catalogue sales, direct mail, toll-free numbers, the Internet (e-commerce), third-party delivery services, and/or any other means of distribution, including through alternative channels or methods of distribution, whether existing now or in the future.
- 1.4 This Agreement is not a Franchise Agreement, and does not grant to DEVELOPER any right to use the Proprietary Marks or the System or to sell or distribute any Products.
- 1.5 DEVELOPER shall have no right under this Agreement to franchise others to use the Proprietary Marks or the System, or to sell, assign or otherwise transfer any portion of DEVELOPER's interest in the Development Area or its development rights under this Agreement.
2. TERM
Unless sooner terminated in accordance with the provisions of this Agreement, this Agreement shall commence on the date hereof and shall expire on the date upon which DEVELOPER is required to enter into a Franchise Agreement for the final Scoop Shop to be developed and opened pursuant to this Agreement.
3. DEVELOPMENT OBLIGATIONS
- 3.1 Recognizing that time is of the essence, DEVELOPER shall comply strictly with the Development Schedule. DEVELOPER acknowledges and agrees that the Development Schedule requires that DEVELOPER have executed and delivered Franchise Agreements for a cumulative number of Scoop Shops and opened a cumulative number of Scoop Shops within the time periods specified.
- 3.2 DEVELOPER agrees to locate and submit specific sites for Scoop Shops. DEVELOPER shall submit to BEN & JERRY'S a site evaluation package ("SEP"), in a form prescribed by BEN & JERRY'S, identifying each proposed site and describing the preliminary design, relevant demographic and cost factors concerning each site. BEN & JERRY'S shall have the right to require that DEVELOPER simultaneously submit SEPs for up to three (3) proposed sites. BEN & JERRY'S shall have ten (10) business days after receipt of a SEP from DEVELOPER to approve or disapprove each proposed site for each Scoop Shop. DEVELOPER must obtain written approval by BEN & JERRY'S of each proposed site, which will be in the form of a "Site Authorization Notice." DEVELOPER shall execute a lease that complies with the requirements set forth below, or a binding agreement to purchase each site within thirty (30) days of approval of each site by BEN & JERRY'S. Within seven (7) days after executing a lease or a binding purchase agreement for each site, DEVELOPER shall execute and deliver to BEN & JERRY'S the Franchise Agreement that shall be provided to DEVELOPER by BEN & JERRY'S for execution, which shall be the form of Franchise Agreement determined in accordance with Section 3.5 below.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a DEVELOPER must strictly comply with the Development Schedule, recognizing that time is of the essence. This schedule requires the DEVELOPER to execute and deliver Franchise Agreements and open a specific cumulative number of Scoop Shops within defined time periods. The DEVELOPER is responsible for locating and submitting potential sites for Scoop Shops to Ben & Jerrys for approval.
The DEVELOPER must submit a site evaluation package (SEP) in the format prescribed by Ben & Jerrys, which includes preliminary designs, demographic data, and cost factors for each proposed site. Ben & Jerrys has the right to request SEPs for up to three sites simultaneously and has ten business days to approve or disapprove each site. Upon written approval, the DEVELOPER must execute a lease or a binding purchase agreement within thirty days. Within seven days of executing the lease or purchase agreement, the DEVELOPER must execute and deliver the Franchise Agreement provided by Ben & Jerrys.
Furthermore, the DEVELOPER must demonstrate the financial ability to open and operate each Scoop Shop required by the Development Schedule and fulfill all pre-opening requirements outlined in the current Franchise Agreement. The DEVELOPER is not held responsible for delays caused by events beyond their control, such as acts of civil or military authority, strikes, terrorism, or Acts of God, provided they make reasonable efforts to correct the cause of the delay and promptly notify Ben & Jerrys in writing. Failure to adhere to the Development Schedule constitutes a default under the agreement.