Can a franchisee expect Ben Jerrys to co-sign a loan?

Based on the 2025 FDD, Ben Jerrys does not appear to offer any direct co-signing of loans for franchisees. However, the FDD does mention a "Guarantee Provision" in the franchise agreement. This provision requires owners, shareholders, partners, or members of a franchisee entity (corporation, partnership, or limited liability company) to personally guarantee the entity's obligations under the Franchise Agreement. This means that individuals associated with the franchisee business are held responsible for the financial and operational commitments of the franchise.

While Ben Jerrys doesn't co-sign loans, they do require a personal guarantee from the owners of the franchisee entity. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and ensures that the franchisee owners are personally invested in the success of the business. The FDD also states that transferees of any owner of a beneficial interest in the OPERATOR may be required to guarantee the performance of the transferee's obligations in writing in a form designated by Ben & Jerry's.

Prospective franchisees should carefully consider the implications of this guarantee, as it could put their personal assets at risk if the franchise fails to meet its obligations. It is advisable to consult with a financial advisor and legal counsel to fully understand the terms of the guarantee and assess the potential risks involved. Franchisees should also inquire with Ben Jerrys about any preferred lending partners or financing programs that may be available to assist with securing funding.