factual

If the transferee is not an individual, what may Ben Jerrys require?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

as a beneficial interest, shall execute a general release, in a form prescribed by BEN & JERRY'S, of any and all claims against BEN & JERRY'S and its affiliates, and their respective officers, directors, agents, and employees;

  • 14.3.4 That any assignment agreement executed by the transferor and transferee shall be in a form designated by BEN & JERRY'S. The transferee of any owner of a beneficial interest in OPERATOR shall enter into a written agreement, in a form designated by BEN & JERRY'S, agreeing to be bound as an owner under the terms of this Agreement as long as such person or entity owns any interest in OPERATOR. If the transferee is other than an individual, the owners of a beneficial interest in the transferee as BEN & JERRY'S may require, shall guarantee the performance of the transferee's obligations in writing in a form designated by BEN & JERRY'S. Additionally, at the option of BEN & JERRY'S, OPERATOR shall execute, for a term ending on the expiration date of this Agreement, the form of franchise agreement then being offered to new System franchisees (for the type of Ben & Jerry's Shop most similar to the Scoop Shop), and such other ancillary agreements required by BEN & JERRY'S for the business franchised hereunder, which agreements shall supersede this Agreement and its ancillary documents in all respects, and the terms of which may differ from the terms of this Agreement, including a higher royalty and advertising fee, provided, however, that OPERATOR shall not have to pay an initial franchise fee;
  • 14.3.5 That the transferee demonstrate to BEN & JERRY'S satisfaction that the terms of the proposed transfer do not place an unreasonable financial or operational burden on the transferee, and that the transferee (or, if the transferee is other than an individual, such owners of a beneficial interest in the transferee as BEN & JERRY'S may require) meets the then-current educational, managerial, socially responsible, and business standards of BEN & JERRY'S (including a demonstration of competence with respect to computer applications, verbal and written language skills, mathematical applications and ability to prepare a business plan); possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to operate the Scoop Shop (as may be evidenced by prior related business experience or otherwise) and absence of conflicting interests; and has adequate financial resources and capital to operate the Scoop Shop.

Source: Item 22 — CONTRACTS (FDD pages 133–134)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, if the transferee of a franchise is not an individual, Ben Jerrys may require the owners of a beneficial interest in the transferee to guarantee the performance of the transferee's obligations in writing, using a form designated by Ben Jerrys.

Additionally, Ben Jerrys may require that the owners of a beneficial interest in the transferee meet the then-current educational, managerial, socially responsible, and business standards of Ben & Jerry's. This includes demonstrating competence with computer applications, verbal and written language skills, mathematical applications, and the ability to prepare a business plan. They must also possess good moral character, business reputation, and credit rating, and demonstrate the aptitude and ability to operate the Scoop Shop, evidenced by prior related business experience or otherwise, and absence of conflicting interests, and have adequate financial resources and capital to operate the Scoop Shop.

Furthermore, Ben Jerrys may require that the owners of a beneficial interest in the transferee, as well as the transferee's manager (if neither the transferee nor an owner of a beneficial interest will manage the Scoop Shop), successfully complete any training programs then in effect for operators and managers, under the terms and conditions that Ben Jerrys may require.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.