If a Ben Jerrys franchisee pays a Preliminary Agreement Deposit, how is it applied?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
Distributors; Suppliers; Landlord; Utilities | | TOTAL15/ | $206,800 to $386,300 | | | |
ESTIMATED EXPENDITURES FOR A KIOSK SCOOP SHOP (APPROXIMATELY 100-200 SQ.FT)
| Type of Expenditure | Estimated Cost | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Preliminary Agreement Deposit1/ | $5,000 - $10,000 (to be credited towards initial franchise fees) | Lu |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–37)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a franchisee may need to pay a Preliminary Agreement Deposit. The amount of this deposit ranges from $5,000 to $10,000. This deposit is paid in a lump sum when signing the agreement and is made payable to Ben and Jerrys.
This deposit is not an additional fee; instead, it is credited towards the initial franchise fee that is due when the Franchise Agreement is signed. The franchisee will not sign the Franchise Agreement or pay the initial franchise fee until a site has been authorized for their Ben Jerrys shop. The initial franchise fee itself varies, ranging from $19,750 to $39,500 for a standard Franchise Agreement, or $8,000 for a Satellite Addendum.
It is important to note that this deposit may be waived for certain qualified managers through Ben and Jerrys's Manager-to-Franchisee Pathways Program, as detailed in Item 5 of the FDD. This program provides an opportunity for eligible managers to become franchisees without the upfront deposit requirement. Additionally, the initial franchise fees for Scoop Shops, Satellite Shops and Test Shops will be waived if you qualify for our Manager-to Franchisee Pathways Program.