What happens when Ben Jerrys revokes approval of a supplier for a Ben Jerrys franchise?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
We may revoke our approval of particular suppliers and/or Products, equipment, supplies, services, and other items when we determine that the supplier and/or Product or other item no longer meets our standards. When you receive written notice that we have revoked our approval of a supplier and/or Product or other item, you must stop purchasing from the disapproved supplier and/or stop selling or using the disapproved Product or other item. Our specifications for Non-Proprietary Products, equipment, supplies, services, and supplier approval are provided to you upon request; however, we have no obligation to make available to prospective suppliers, standards and specifications that we deem confidential. When approving suppliers, we consider ability to meet our then-current standards and specifications, quality controls and capacity to supply franchisees' needs promptly and reliably, and the possibilities for the System to take advantage of marketplace efficiencies. When approving Non-Proprietary Products, equipment, supplies, services, and other items we consider their conformity with our specifications, compatibility with our Ben & Jerry's Products, consistency with the desired image of our System, and availability to the System. We retain the sole control over the Products authorized for sale in our System and may deny our approval of a Product, equipment, supplies, services, or other item for any reason.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys retains the right to revoke approval of suppliers or products if they no longer meet the company's standards. If Ben Jerrys revokes approval of a supplier, franchisees will receive written notice. Upon receiving this notice, the franchisee is obligated to immediately cease purchasing from the disapproved supplier and discontinue selling or using any disapproved products.
This stipulation is significant for prospective Ben Jerrys franchisees because it highlights the control Ben Jerrys maintains over its supply chain and product quality. Franchisees must remain vigilant about supplier approvals and be prepared to switch suppliers or discontinue products promptly upon notification. Failure to comply with these directives could result in a breach of the franchise agreement.
Ben Jerrys considers various factors when approving suppliers, including their ability to meet current standards and specifications, quality controls, capacity to reliably supply franchisees, and the potential for the system to benefit from marketplace efficiencies. For non-proprietary items, Ben Jerrys also considers conformity with specifications, compatibility with Ben & Jerry's products, consistency with the desired brand image, and availability to the system. This rigorous process aims to ensure consistent quality and brand standards across all franchise locations.
Furthermore, Ben Jerrys may designate a single supplier for certain products, equipment, or services, requiring franchisees to purchase exclusively from that designated source. Ben Jerrys or its affiliates may also receive compensation from suppliers based on franchisee purchases. This practice is common in franchising, allowing franchisors to maintain quality control and potentially benefit from negotiated pricing or rebates.