If a Ben Jerrys franchise agreement is executed pursuant to a Development Agreement for the second or subsequent Scoop Shop, how is the initial franchise fee paid?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
or Exhibit A to Ben & Jerry's Franchising, Inc. Franchise Agreement**
| (See Section 1.3). | |
|---|---|
| The Territory (See Section 1.4) shall be | |
| North: | |
| South: | |
| East: | |
| West: | |
| Initial Franchise Fee. The initial franchise fee shall be $ (See Section 4.1). | |
| The initial franchise fee is determined and payable as follows (check one): | |
| | If this Agreement is not executed pursuant to a Development Agreement: |
| a. | |
| $, paid upon execution of the Preliminary Agreement, and | |
| b. | |
| $, paid upon execution of this Agreement. (check one): |
| | If this Agreement is executed pursuant to a Development Agreement and is for the first Scoop Shop developed, $was paid upon execution of the Development Agreement as part of a Develop
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, when a franchise agreement is executed under a Development Agreement for the second or any subsequent Scoop Shop, the initial franchise fee is handled in two parts. First, a portion of the Development Fee, paid upon the execution of the Development Agreement, is credited towards the initial franchise fee. Second, the remaining balance of the initial franchise fee is paid upon the execution of the individual Franchise Agreement for that specific Scoop Shop.
This means that the franchisee doesn't pay the entire initial franchise fee at once when signing the Franchise Agreement for subsequent locations. Instead, they've already partially covered it through the Development Fee paid earlier. This can ease the financial burden at the time of opening new locations under a Development Agreement.
It is important for prospective franchisees to carefully review the Development Agreement and Franchise Agreement to understand the exact amounts and payment schedules involved. The specific dollar amounts for both the Development Fee and the remaining initial franchise fee are not specified in this excerpt but would be detailed in Exhibit A of the franchise agreement and the Development Agreement itself. Understanding these amounts is crucial for financial planning.