Does Ben Jerrys grant franchisees an exclusive territory?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
owever, we do acknowledge the MAC's input in as much as it represents the experience and perspective of the entire franchise system. When acting in its advisory capacity, all of the MAC's recommendations are restricted to issues related to the System and not to issues of individual locations.
ITEM 12 TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets we own, or from other channels of distribution or competitive brands that we or our affiliates control. The governing agreements, as described below, will specify the Authorized Location and Territory, as applicable, for your Shop.
Preliminary Agreement
If you want to operate a Scoop Shop, we may offer to enter into a Preliminary Agreement. During the Evaluation Period, while you are searching for a site in accordance with the Preliminary Agreement, we will not enter into a Preliminary Agreement or Franchise Agreement, or other similar agreement with anyone for a Scoop Shop or Satellite Shop within the Deposit Area. If you fail to find an authorized site during the Evaluation Period, we will have the right to enter into a Preliminary Agreement, Franchise Agreement or other similar agreement with any other interested party for Shops to be located within the Deposit Area. There is no other purpose for the Deposit Area.
Franchise Agreement and Development Agreement for Scoop Shops
The following describes how Territories and Development Areas are determined, and the rights that you and we have under the Franchise Agreement for Scoop Shops and the Development Agreement.
Franchise Agreement
Your Franchise Agreement will specify an authorized location (the "Authorized Location") for your Shop. As described in Item 1, if you will operate a Scoop Shop, your Franchise Agreement will also specify a Territory. The size and scope of the Territory will be contained in the Franchise Agreement and will be determined on a case-by-case basis. The factors that we consider in determining the size of a Territory may include current and projected market demand, demographics and population, traffic patterns, access and visibility, location of other Scoop Shops and our future development plans. The Territory is not the same area as the Deposit Area under the Preliminary Agreement. If your Scoop Shop is located in a major shopping center,
the shopping center will most likely be your Territory. If your Scoop Shop is located in a neighborhood, suburban or urban location, your Territory will likely be delineated by physical boundaries such as roads or bodies of water, or by a radius around the Scoop Shop.
During the term of the Franchise Agreement, we will not establish or operate, nor license any other person to establish or operate a Shop in the Territory except as may be permitted under the Franchise Agreement and those exceptions are described below. There are no circumstances under which the Territory may be altered prior to expiration or termination of the Franchise Agreement. Your territorial protection is not dependent upon achievement of a certain sales volume, market penetration, or other factors, other than compliance with the Franchise Agreement.
If you desire to sell or scoop Products at an Off-Premises Activity or through On-Demand Sales or Mobile Vending located outside the Territory, all such sales and activities must comply with our Off-Premises Policy, which is included in the Manual.
Additionally, if we determine the scooping of Products at an Off-Premises Activity in your Territory is desirable, we may send you a Request for Notice. If we send you a Request for Notice and you desire to scoop Products at the Off-Premises Activity, you must send us a signed Notice of Intent to Scoop within 5 business days after receipt by you of the Request for Notice. If you do not send us a Notice of Intent to Scoop within 5 business days after the date of receipt by you of the Request for Notice and proof of authorization to scoop Products at such Off-Premises Activity as required by the Manual, you will be deemed to have waived your right to scoop and sell Products at the Off-Premises Activity. If you waive the right to scoop Products at any Off-Premises Activity, we may scoop Products or grant another franchisee the right to scoop and sell Products at the Off-Premises Activity.
Development Agreement
If you sign a Development Agreement, the Development Agreement will specify the Deposit Areas (together the "Development Area"), within which you may locate potential sites for Scoop Shops, subject to our approval. The size and scope of the Deposit Areas comprising the Development Area will be contained in the Development Agreement and will be determined on a case-by-case basis. The factors that we consider in determining the size of a Development Area include current and projected market demand, demographics and population, traffic patterns, location of other Scoop Shops, the financial and other capabilities of the developer, and our development plans.
Source: Item 12 — TERRITORY (FDD pages 60–64)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. The FDD specifies that franchisees may face competition from other franchisees, outlets Ben Jerrys owns, other distribution channels, or competitive brands controlled by Ben Jerrys or its affiliates. The governing agreements will specify the Authorized Location and Territory, as applicable, for the Shop.
For Scoop Shops, the Franchise Agreement will specify an authorized location and a Territory, with the size and scope of the Territory determined on a case-by-case basis. Factors influencing the territory size include market demand, demographics, traffic patterns, the location of other Scoop Shops, and Ben Jerrys's future development plans. The territory's boundaries are determined by whether the Scoop Shop is in a shopping center (where the shopping center is likely the territory) or in a neighborhood, suburban, or urban location (where physical boundaries like roads or bodies of water, or a radius around the Scoop Shop, will delineate the territory).
During the Franchise Agreement term, Ben Jerrys will not establish, operate, or license others to establish or operate a Shop in the Territory, except as permitted under the Franchise Agreement. The territory cannot be altered before the agreement expires or terminates, and territorial protection is contingent on compliance with the Franchise Agreement, not on sales volume or market penetration. If a franchisee desires to sell or scoop Products at an Off-Premises Activity or through On-Demand Sales or Mobile Vending located outside the Territory, all such sales and activities must comply with Ben Jerrys's Off-Premises Policy, which is included in the Manual.
For Development Agreements, the agreement will specify Deposit Areas (together the Development Area) within which franchisees may locate potential sites for Scoop Shops, subject to Ben Jerrys's approval. The size and scope of the Deposit Areas are determined on a case-by-case basis, considering factors like market demand, demographics, traffic patterns, the location of other Scoop Shops, the developer's financial capabilities, and Ben Jerrys's development plans. During the Development Agreement term, if the franchisee complies with their obligations, Ben Jerrys will not establish, operate, or franchise anyone other than the franchisee to establish or operate Shops in a Deposit Area until the Development Agreement expires or Ben Jerrys authorizes a site for the Shop within that Deposit Area. The territorial protection is not dependent upon achievement of a certain sales volume, market penetration, or other factors, other than compliance with the Development Agreement and Development Schedule.