If Ben Jerrys assigns the Franchise Agreement, who becomes responsible for Ben Jerrys' obligations?
Ben_Jerrys Franchise · 2025 FDDAnswer 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, including its rights and obligations, to another party. If Ben Jerrys assigns the agreement, the assignee becomes solely responsible for the obligations of Ben & Jerry's under the agreement from the date of the transfer or assignment.
This means that a prospective Ben Jerrys franchisee should understand that the entity they initially contract with may not be the entity they deal with throughout the entire term of the franchise agreement. The new assignee would then be responsible for upholding Ben Jerrys's end of the agreement.
This is a fairly standard clause in franchise agreements, allowing the franchisor flexibility in its business operations. However, it's important for the franchisee to be aware of this possibility and to understand that their contractual relationship could shift to a new entity during the term of the agreement.