Is the Development Fee for a Ben Jerrys franchise refundable, and why or why not?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 Development Area under the Development Schedule, if DEVELOPER is in full compliance with this Agreement and all Franchise Agreements and any other agreement with Franchisor at the time DEVELOPER signs each Franchise Agreement, BEN & JERRY'S will credit the portion of the Development Fee that DEVELOPER paid for such Scoop Shop toward payment of the initial franchise fee (which amounts are set forth above) that is due for such Scoop Shop. DEVELOPER must pay to BEN & JERRY'S the balance of the initial franchise fee due for such Scoop Shop upon signing the Franchise Agreement for such Scoop Shop.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the Development Fee is generally nonrefundable. The Development Fee compensates Ben Jerrys for administrative and other expenses incurred during the initial setup phase. This fee is considered fully earned by Ben Jerrys upon receipt, regardless of whether the developer ultimately enters into a Franchise Agreement for a Scoop Shop.
For a new Ben Jerrys operator, the Development Fee is $15,000 for the first Scoop Shop and an additional $7,500 for each additional Scoop Shop specified in the Development Schedule. For existing operators, the Development Fee is $10,000 for the first Scoop Shop and $5,000 for each additional Scoop Shop.
However, there is a potential credit towards the initial franchise fee. If the developer is in full compliance with the Development Agreement, all Franchise Agreements, and any other agreements with Ben Jerrys when signing each Franchise Agreement, Ben Jerrys will credit the portion of the Development Fee paid for that Scoop Shop toward the initial franchise fee due for that specific Scoop Shop. The developer is still responsible for paying the balance of the initial franchise fee upon signing the Franchise Agreement. This means that while the Development Fee itself is nonrefundable, it can be applied as a credit to offset the initial franchise fee, effectively reducing the upfront cost of opening a Ben Jerrys Scoop Shop.