In the Ben Jerrys Franchise Agreement, what information is required for the Designated Owner?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
18. CORPORATE, LIMITED LIABILITY COMPANY, OR PARTNERSHIP OPERATOR
- 18.1 If OPERATOR is a corporation, limited liability company, or partnership, each shareholder, member or partner of OPERATOR, and the interest of such person in OPERATOR, shall be identified in Exhibit C hereto. OPERATOR shall immediately furnish BEN & JERRY'S with an update to the information contained in Exhibit C upon any change, provided that nothing in this Section 18.1 shall waive or otherwise limit the terms of Section 14 regarding transfers. Additionally, OPERATOR shall identify in Exhibit C, an Owner, who is acceptable to BEN & JERRY'S, to serve as OPERATOR's "Designated Owner." The Designated Owner is, and at all times during the term of this Agreement shall be, an Owner of at least twenty percent (20%) of the capital stock of OPERATOR (on a fully diluted basis). The Designated Owner must devote his or her full time and best efforts to the management of the operations of the Scoop Shop, and OPERATOR empowers the Designated Owner with the responsibility and decisionmaking authority regarding the Scoop Shop's operation and OPERATOR's business. OPERATOR acknowledges and agrees that BEN & JERRY'S shall have the right to rely upon the Designated Owner for such purposes. Additionally, OPERATOR shall not remove or replace the Designated Owner identified in Exhibit C without the prior written approval of BEN & JERRY'S.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if the franchisee (OPERATOR) is a corporation, limited liability company, or partnership, the identity of each shareholder, member, or partner, along with their respective interest in the OPERATOR, must be disclosed in Exhibit C of the Franchise Agreement.
Furthermore, Exhibit C must identify an Owner who is acceptable to Ben Jerrys to serve as the Designated Owner. This Designated Owner must hold at least 20% of the capital stock of the OPERATOR on a fully diluted basis. The Designated Owner is required to commit their full-time efforts to managing the Scoop Shop's operations and possesses the authority for decision-making related to the Scoop Shop's business.
Ben Jerrys retains the right to rely on the Designated Owner for operational matters. The franchisee cannot remove or replace the Designated Owner listed in Exhibit C without obtaining prior written approval from Ben Jerrys.