What happens if a Ben Jerrys developer does not cure a default within the specified time?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
If any such default is not cured within the specified time, or such longer period as applicable law may require, this Agreement and all rights granted hereunder (including the right to develop new Scoop Shops) will terminate without further notice to DEVELOPER effective immediately upon the expiration of the thirty (30) day period or such longer period as applicable law may require.
- 6.4 Upon termination or expiration of this Agreement, all rights granted hereunder to DEVELOPER shall terminate and DEVELOPER shall have no right to establish or operate any Scoop Shop for which a Franchise Agreement has not been executed by BEN & JERRY'S at the time of termination.
Thereafter, BEN & JERRY'S shall be entitled to establish, and to franchise others to establish, Scoop Shops in the Development Area, except as may be otherwise provided under any Franchise Agreement that has been executed between BEN & JERRY'S and DEVELOPER.
6.7 If DEVELOPER fails to cure a default within any applicable notice period, or if this Agreement is terminated as a result of DEVELOPER'S default, DEVELOPER shall pay to BEN & JERRY'S all damages, costs and expenses, including late fees, collection fees, interest at one and one-half percent (1.5%) per month, or the highest permissible rate, and reasonable investigation and attorney's fees incurred by BEN & JERRY'S as a result of any such default or termination. All such interest, damages, costs and expenses may be included in and form part of the judgment awarded to BEN & JERRY'S in any proceedings brought by BEN & JERRY'S against DEVELOPER.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if a developer fails to cure a default within the specified time, the Development Agreement and all rights granted to the developer will terminate without further notice. This termination is effective immediately upon the expiration of the initial thirty-day period given to cure the default, or any longer period if required by applicable law.
Upon termination or expiration of the Development Agreement, the Ben Jerrys developer loses all rights to establish or operate any Scoop Shop for which a Franchise Agreement has not been executed by Ben Jerrys at the time of termination. Ben Jerrys then has the right to establish Scoop Shops in the Development Area or franchise others to do so, unless otherwise specified in any existing Franchise Agreement between Ben Jerrys and the developer.
Furthermore, if the Ben Jerrys developer fails to cure a default within the applicable notice period, they are responsible for paying Ben Jerrys all damages, costs, and expenses. These include late fees, collection fees, interest at a rate of 1.5% per month (or the highest permissible rate), and reasonable investigation and attorney's fees incurred by Ben Jerrys as a result of the default or termination. All these costs may be included in the judgment awarded to Ben Jerrys in any legal proceedings against the developer.