If the Ben Jerrys franchise agreement is not executed pursuant to a Development Agreement, how is the initial franchise fee determined and payable?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
missibility.
IN WITNESS WHEREOF, the parties hereto have duly executed this Addendum on the date first above written.
OPERATOR Ben & Jerry's Franchising, Inc. BEN & JERRY'S
Exhibit A to Addendum
**Replacemen
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if the Franchise Agreement is not executed pursuant to a Development Agreement, the initial franchise fee is determined as follows: The franchisee will pay a certain amount upon execution of the Preliminary Agreement, and another amount upon execution of the Franchise Agreement. The specific dollar amounts are not provided in this section.
Item 22 indicates that the initial franchise fee is detailed in Section 4.1 of the agreement and Exhibit A. The standard initial franchise fee is $39,500 unless the franchisee is an existing franchisee or the agreement is part of a Development Agreement. If a Preliminary Agreement was signed and a deposit was paid, that deposit will be credited toward the initial franchise fee.
Prospective franchisees should carefully review Exhibit A and Section 4.1 of the Franchise Agreement to understand the exact amounts and payment schedule for the initial franchise fee when not part of a Development Agreement. It is important to clarify these amounts with Ben Jerrys during the due diligence process to fully understand the financial obligations.