What is a Ben Jerrys developer prohibited from doing that would be considered diverting business to a competitor?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
8.1 DEVELOPER specifically acknowledges that, pursuant to this Agreement, DEVELOPER will receive valuable, specialized training and confidential information, including information regarding site selection, methods and techniques of BEN & JERRY'S and the
System. DEVELOPER covenants that during the term of this Agreement, except as otherwise approved in writing by BEN & JERRY'S, DEVELOPER shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, affiliates, partnership, corporation, or other entity:
- 8.1.1 Divert or attempt to divert any present or prospective business or customer of any shop under the System to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with BEN & JERRY'S (or any of its affiliates), the Products, the Proprietary Marks or the System; or
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a developer is prohibited from diverting or attempting to divert any present or prospective business or customer of any shop under the Ben Jerrys system to any competitor. This includes doing any act that is injurious or prejudicial to the goodwill associated with Ben Jerrys, its products, proprietary marks, or the system itself. This restriction applies during the term of the Development Agreement, unless Ben Jerrys provides written approval otherwise.
This covenant aims to protect the Ben Jerrys brand and its franchisees from unfair competition by developers who have access to valuable training and confidential information about the Ben Jerrys system. By preventing developers from diverting business to competitors, Ben Jerrys seeks to maintain the integrity of its brand and the success of its franchise network.
In practical terms, this means a Ben Jerrys developer cannot actively solicit Ben Jerrys customers to patronize a competing ice cream business. They also cannot take actions that would undermine the reputation or customer loyalty of existing Ben Jerrys shops. Violation of this covenant could result in legal action and termination of the Development Agreement with Ben Jerrys.