How is the Development Fee for a Ben Jerrys franchise paid?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
en; local economic conditions; the local market for products and services; the prevailing wage rate; competition within your market; and the sales level reached by your Shop during the startup phase.
- If you sign a Development Agreement, your initial investment will be in the form of a nonrefundable Development Fee. The Development Fee will a vary depending on (a) whether
you are a new franchisee or are an existing franchisee; and (b) the number of Scoop Shops you wish to develop.
If you are a new franchisee to the System, the Development Fee will be equal to $10,000 for the first Scoop Shop, plus $5,000 for the second and each additional Scoop Shop (e.g., if you are new franchisee and are developing three Scoop Shops, your Development Fee will equal $20,000). If you are an existing franchisee of the System at the time of the signing of the Development Agreement, the Development Fee will be equal to $5,000 multiplied by the number of Scoop Shops specified in the Development Schedule of your Development Agreement (e.g., if you are an existing franchisee and are developing three Scoop Shops, your Development Fee will equal $15,000).
As noted in Item 5, if you meet your obligations under the Development Agreement and are not otherwise in default under any other agreement with us, as you sign Franchise Agreements for the development and operation of each Shop under the Development Schedule, we will credit the portion of the Development Fee that you paid on account of such Shop, towards payment of the initial franchise fee due for that Shop (the amount of each initial franchise fee will be det
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–37)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the Development Fee, which is nonrefundable, is paid as an initial investment when signing a Development Agreement. The amount of the Development Fee varies based on whether the franchisee is new to the Ben Jerrys system or an existing franchisee, and on the number of Scoop Shops the franchisee intends to develop.
For new franchisees, the Development Fee is $10,000 for the first Scoop Shop, plus $5,000 for each additional Scoop Shop. For example, a new franchisee planning to develop three Scoop Shops would pay a Development Fee of $20,000. Existing franchisees pay a Development Fee of $5,000 multiplied by the number of Scoop Shops specified in the Development Schedule of their Development Agreement. Thus, an existing franchisee developing three Scoop Shops would pay a Development Fee of $15,000.
Ben Jerrys will credit the portion of the Development Fee paid for each Scoop Shop towards the initial franchise fee due for that Shop, provided the franchisee meets their obligations under the Development Agreement and is not in default under any other agreement with Ben Jerrys. The franchisee will pay the remaining balance of the initial franchise fee when signing the Franchise Agreement for that specific Scoop Shop. The initial franchise fee amounts are determined according to a schedule of fees, as detailed elsewhere in the FDD.