factual

Will a Ben Jerrys franchisee pay an initial fee for the replacement franchise agreement when relocating?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

You may not relocate the Shop from the Authorized Location unless you obtain our prior written approval of your request to relocate, which request must meet certain criteria. The substitute location must be within the Territory of your Shop (or, in the case of a Satellite Shop, it must be within the Territory of your Shop). Among other factors, we will assess your financial ability to meet the necessary costs incurred in relocating. We are not required to approve any relocation request. If you qualify to relocate, we will require that you enter into our then-current form of Franchise Agreement (replacing your existing franchise agreement) for the remainder of the term of your franchise. Although you will not pay an initial fee for entering into our thencurrent form of franchise agreement (as it will cover only the remainder of term of your existing franchise), we will charge a fee for the re-location of a franchise to include our costs for the evaluation of you, your proposed site and the documentation of your proposed location and replacement franchise agreement. See Item 6 for more information regarding the relocation fee.

Source: Item 12 — TERRITORY (FDD pages 60–64)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, a franchisee will not pay an initial fee for the replacement franchise agreement when relocating. However, Ben Jerrys requires franchisees to enter into their then-current form of Franchise Agreement for the remainder of the franchise term if they qualify to relocate their shop.

Although Ben Jerrys does not charge an initial fee for the replacement agreement, they do charge a relocation fee. This fee covers Ben Jerrys's costs for evaluating the franchisee, the proposed site, and the documentation of the proposed location and replacement franchise agreement. More information about the relocation fee can be found in Item 6 of the FDD.

This means that while franchisees won't have to pay a full initial franchise fee again, they will still incur costs associated with relocating their Ben Jerrys shop. It is important for prospective franchisees to carefully review Item 6 to understand the full scope of the relocation fee and factor this into their financial planning if they anticipate needing to relocate during the term of their franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.