Will Ben Jerrys guarantee a franchisee's note?

Based on the 2025 Ben & Jerry's Franchise Disclosure Document, Ben & Jerry's does not guarantee a franchisee's note. However, 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 the agreement are guaranteed.

This means that while Ben & Jerry's itself does not act as a guarantor for a franchisee's financial obligations, the individuals behind the business entity (e.g., the owners of a corporation) must personally guarantee that the business will meet its financial responsibilities to Ben & Jerry's. This is a common practice in franchising to ensure that there is a direct line of accountability and that individuals with a vested interest in the business are personally liable for its performance.

For a prospective Ben & Jerry's franchisee, this implies that if you are setting up a business entity to operate the franchise, you and your business partners will need to be prepared to personally guarantee the obligations of that entity. This is a significant commitment, as it puts your personal assets at risk if the franchise fails to meet its financial obligations to Ben & Jerry's. Therefore, it is crucial to carefully consider the financial implications and risks before entering into a Ben & Jerry's franchise agreement.