What is the geographic scope of the non-competition covenant that applies to a Ben Jerrys franchisee after the franchise is terminated or expires?

According to Ben Jerrys's 2025 Franchise Disclosure Document, after the franchise is terminated or expires, a franchisee is subject to a non-competition covenant. This covenant includes a 2-year prohibition that prevents the franchisee from engaging in activities identical to those restricted during the term of the franchise.

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 System. However, this restriction does not apply if the franchisee becomes an Operator under the Ben Jerrys System under a new franchise agreement with them.

This means that a former Ben Jerrys franchisee cannot operate a competing business, defined as one significantly engaged in the sale of ice cream, sorbet, frozen yogurt, and/or other frozen dessert items, within that 5-mile radius for two years after their franchise agreement ends, unless they re-enter the Ben Jerrys system as a franchisee at a different location. This post-term covenant protects Ben Jerrys's market share and brand recognition in areas where they have existing shops.