In the event of a dispute with Ben Jerrys, what state's law governs the Franchise Agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or other Agreement | Summary |
|---|---|---|
| our principal place of business at the time the action is initiated. | ||
| w. Choice of law | § 26.1 of Franchise Agreement | Vermont Law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 68–76)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the Franchise Agreement is governed by Vermont law. Specifically, section 26.1 of the Franchise Agreement states that Vermont Law applies in regards to choice of law. This means that any legal disputes arising from the franchise relationship will be interpreted and resolved in accordance with the laws of Vermont.
This is a common practice in franchising, where the franchisor typically designates a specific state's law to govern the agreement in order to ensure consistency and predictability in legal matters. However, it is important for prospective franchisees to understand that they may be subject to laws that are different from those in their own state of residence or business operation.
For a Ben Jerrys franchisee, this means that if a dispute arises that leads to litigation, the laws of Vermont will be applied, regardless of where the franchisee's shop is located. Franchisees may need to consult with legal counsel familiar with Vermont law to fully understand their rights and obligations under the Franchise Agreement. This could potentially add complexity and expense to any legal proceedings.