Will Ben Jerrys guarantee a franchisee's lease?

Based on the 2025 FDD, Ben & Jerry's does not guarantee a franchisee's lease. However, the FDD indicates that if the franchisee is a corporation, partnership, or limited liability company, Ben & Jerry's requires all owners, shareholders, partners, or members to personally sign a guarantee provision in the Franchise Agreement. This provision ensures that the legal entity's obligations under each agreement are guaranteed. This guarantee provision is an inducement for Ben & Jerry's to enter into an agreement with the franchisee.

Additionally, before a prospective Ben & Jerry's franchisee executes a lease or sublease for their shop, Ben & Jerry's will review the lease to ensure it contains provisions required in the Preliminary Agreement. These provisions include ensuring the lease duration matches the term of the Franchise Agreement. The FDD also states that if the transferee is other than an individual, the owners of a beneficial interest in the transferee as Ben & Jerry's may require, shall guarantee the performance of the transferee's obligations in writing in a form designated by Ben & Jerry's.

While Ben & Jerry's does not directly guarantee the lease, they do require certain individuals or entities to guarantee the franchisee's obligations, which indirectly provides some level of assurance to Ben & Jerry's. This is a common practice in franchising, where franchisors seek to ensure the financial stability and commitment of their franchisees through various forms of guarantees.