factual

What happens to Ben Jerrys' obligations under the agreement if it is transferred?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 14.1 BEN & JERRY'S shall have the right to transfer or assign this Agreement and all or any part of its rights or obligations herein to any person or legal entity, and any designated assignee of BEN & JERRY'S shall become solely responsible for all transferred or assigned obligations of BEN & JERRY'S under this Agreement from the date of such transfer or assignment.

Source: Item 22 — CONTRACTS (FDD pages 133–134)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben & Jerry's has the right to transfer or assign the Franchise Agreement, in whole or in part, to any person or legal entity. Upon such transfer or assignment, the designated assignee of Ben Jerrys becomes solely responsible for all transferred or assigned obligations of Ben Jerrys under the agreement, starting from the date of the transfer or assignment. This means that Ben Jerrys can pass on its responsibilities and rights to another party.

For a prospective franchisee, this clause indicates that the entity they initially contracted with (Ben Jerrys) might not be the entity they deal with throughout the term of the agreement. It is important to recognize that the new assignee will be responsible for fulfilling Ben Jerrys's obligations from the date of the transfer forward.

This transfer clause is a fairly standard provision in franchise agreements, allowing the franchisor flexibility in its business operations. However, it's essential for the franchisee to understand that the quality and nature of support and obligations could change if the agreement is transferred to a different entity. A prospective franchisee should evaluate the reputation and capabilities of potential assignees, if possible, to assess the future relationship and support they might receive.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.