Is the Ben Jerrys Development Fee refundable?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
initial franchise fee(s) and Development Fee will be $19,750 for the first Scoop Shop, and $16,000 for the second and each additional Scoop Shop.
Upon signing the Development Agreement (regardless of whether you were already a franchisee in our System prior to entering into a Development Agreement), you must pay us a development fee ("Development Fee"). For new franchisees, the Development Fee is equal to $15,000 for the first Scoop Shop to be developed plus $7,500 for each additional Scoop Shop specified in the Development Schedule of your Development Agreement. For existing franchisees, the Development Fee is equal to $10,000 for the first Scoop Shop to be developed plus $5,000 for each Scoop Shop s specified in the Development Schedule of your Development Agreement. The Development Fee is earned and non-refundable regardless of whether you enter into Franchise Agreements for those Scoop Shops, in consideration of administrative and other expenses we incur in entering into the Development Agreement.
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 determined according to the schedule of fees described abo
Source: Item 5 — INITIAL FEES (FDD pages 20–23)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the Development Fee is generally non-refundable. The FDD states that the Development Fee is earned upon signing the Development Agreement and is non-refundable, regardless of whether the franchisee ultimately enters into Franchise Agreements for the Scoop Shops outlined in the Development Schedule. This fee compensates Ben Jerrys for administrative and other expenses incurred when entering into the Development Agreement.
However, the Development Fee can be credited towards the initial franchise fee for each Scoop Shop if the franchisee meets their obligations under the Development Agreement and is not in default under any other agreement with Ben Jerrys. As the franchisee signs Franchise Agreements for each shop, the portion of the Development Fee paid for that shop will be credited towards the initial franchise fee due. The franchisee will then pay the remaining balance of the initial franchise fee at the time of signing the Franchise Agreement for that particular Scoop Shop.
For new franchisees, the Development Fee is $15,000 for the first Scoop Shop, plus $7,500 for each additional Scoop Shop specified in the Development Schedule. For existing franchisees, the Development Fee is $10,000 for the first Scoop Shop, plus $5,000 for each additional Scoop Shop. The initial franchise fee(s) and Development Fee for a new franchisee will be $39,500 for the first Scoop Shop, and $19,750 for the second and each additional Scoop Shop. If you are an existing franchisee, the initial franchise fee(s) and Development Fee will be $19,750 for the first Scoop Shop, and $16,000 for the second and each additional Scoop Shop.