What guidelines and requirements relating to insurance coverage and vehicle use in Off-Premises Activities or Mobile Vending are Ben Jerrys operators subject to?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 7.2 of the Franchise Agreement shall be renumbered as Section 7.2.1 and shall be replaced by the following:
- 7.2.1 OPERATOR shall use the Premises solely for the operation of the Scoop Shop; shall keep the Scoop Shop open and in normal operation for such minimum hours and days as BEN & JERRY'S may specify; shall refrain from using or permitting the use of the Premises for any other purpose or activity at any time without obtaining the written consent of BEN & JERRY'S. As described in Section 1.2 herein, [OPERATOR/the Catering Entity] may engage in Off-Premises Activities [and/or Mobile Vending]within the Territory of OPERATOR, but only in accordance with the terms and conditions stated in this Agreement, in the Manual (including guidelines and requirements relating to insurance coverage and vehicle use in Off-Premises Activities [and/or Mobile Vending]) or as
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- Section 13 of the Franchise Agreement shall be amended by the addition of the following Sections 13.5 through 13.7:
- 13.5 [OPERATOR/The Catering Entity] shall procure and maintain in full force and effect at all times during the term of this Agreement, at [OPERATOR's/the Catering Entity's] expense, an insurance policy or policies protecting [the Catering Entity], OPERATOR, and BEN & JERRY'S against any demand or claim with respect to personal injury, death, or property damage, or any loss, liability, or expense whatsoever arising or occurring upon or in connection with providing Off-Premises Activities [and/or Mobile Vending] through the Authorized Warehouse, including comprehensive general liability insurance, property and casualty insurance, statutory workers' compensation insurance, product liability insurance and vehicle insurance. Such policy or policies shall reflect industry standards, shall be written by a responsible carrier or carriers acceptable to BEN & JERRY'S, shall name BEN & JERRY'S and its affiliates as additional insureds, and shall provide at least the types and minimum amounts of coverage as are specified in the Manual, or as otherwise prescribed by BEN & JERRY'S in writing, as such may be modified by BEN & JERRY'S from time to time.
13.6 [OPERATOR's/The Catering Entity's] obligation to obtain and maintain the policy or policies in the amounts specified in the Manual or otherwise in writing shall not be limited in any way by reason of any insurance which may be maintained by BEN & JERRY'S, nor shall [OPERATOR's/the Catering Entity's] performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 20.3 of this Agreement.
13.7 [OPERATOR/The Catering Entity] shall deliver to BEN & JERRY'S Certificates of Insurance evidencing the proper types and minimum amounts of coverage. [OPERATOR/The Catering Entity] shall also maintain Certificates of Insurance evidencing the proper types and minimum amounts of coverage for the Off-Premises Activities [and/or Mobile Vending] provided from the Authorized Warehouse. All Certificates shall expressly provide that no less than thirty (30) days' prior written notice shall be given to BEN & JERRY'S in the event of material alteration to or cancellation of the coverages evidenced by such Certificates.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, operators engaging in Off-Premises Activities and Mobile Vending must adhere to specific guidelines and requirements, particularly concerning insurance coverage and vehicle use. The Franchise Agreement stipulates that operators must secure and maintain insurance policies throughout the agreement's term. These policies should protect the operator, any catering entity, and Ben Jerrys against claims related to personal injury, death, property damage, loss, liability, or expenses arising from Off-Premises Activities and Mobile Vending conducted through the Authorized Warehouse. The required insurance includes comprehensive general liability, property and casualty, statutory workers' compensation, product liability, and vehicle insurance.
The insurance policies must align with industry standards and be underwritten by carriers acceptable to Ben Jerrys. Ben Jerrys and its affiliates must be named as additional insured parties on these policies. The types and minimum amounts of coverage must meet the specifications outlined in the Manual or as otherwise prescribed by Ben Jerrys in writing, with potential modifications over time. The operator's obligation to maintain specified insurance amounts is not limited by any insurance Ben Jerrys may hold, nor does it relieve the operator of indemnity liabilities as per Section 20.3 of the Franchise Agreement.
Furthermore, operators must provide Ben Jerrys with Certificates of Insurance that evidence the required coverage types and minimum amounts. These certificates must cover Off-Premises Activities and Mobile Vending conducted from the Authorized Warehouse. The certificates must also guarantee that Ben Jerrys will receive at least thirty days' written notice before any material alteration or cancellation of the insurance coverage. These stipulations ensure that Ben Jerrys franchisees adequately protect themselves and the Ben Jerrys brand from potential liabilities associated with off-premises operations.