For Ben Jerrys franchises in Maryland, when are initial fees and payments deferred, and why?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 …Notwithstanding the provisions of this section, based upon BEN & JERRY'S financial condition, the Maryland Securities Commissioner has required a financial assurance.
Therefore, all initial fees and payments owed by OPERATOR shall be deferred until BEN & JERRY'S completed it pre-opening obligations under the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a Maryland Franchise Agreement Amendment states that initial fees and payments are deferred for Ben Jerrys franchisees in Maryland. Specifically, the Maryland Securities Commissioner has required a financial assurance based on Ben & Jerry's financial condition.
This means that all initial fees and payments owed by the operator (franchisee) will be deferred. This deferral lasts until Ben Jerrys has completed its pre-opening obligations as outlined in the Franchise Agreement.
This amendment protects the franchisee by ensuring that they do not pay initial fees until Ben Jerrys has fulfilled its responsibilities in preparing the franchise for opening. This type of financial assurance is not standard across all franchise systems, so it represents a specific condition for Ben Jerrys franchises in Maryland due to the company's financial situation.