What geographic limitations apply to the non-competition covenants after the Ben Jerrys franchise is terminated or expires?

According to Ben Jerrys's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is subject to a non-competition covenant. This covenant includes a 2-year prohibition that prevents the franchisee from engaging in activities competitive with Ben Jerrys.

The geographic scope of this restriction extends to the area at or within a 5-mile radius of any Ben Jerrys Shop then operating under the Ben Jerrys system. This means that after the franchise agreement ends, the former franchisee cannot own, maintain, operate, engage in, or be employed by any other business not under the Ben Jerrys system that is significantly engaged in the sale of ice cream, sorbet, frozen yogurt and/or other frozen dessert items within that 5-mile radius.

However, there is an exception to this restriction. If the former franchisee becomes an Operator under the Ben Jerrys system under a new franchise agreement with Ben Jerrys, the non-competition covenant does not apply. This suggests that individuals can continue in the ice cream business, provided they remain within the Ben Jerrys franchise network.