If Ben Jerrys transfers the Franchise Agreement, does the assignee assume all 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 the Franchise Agreement to another party. If Ben & Jerry's assigns the agreement, the assignee becomes solely responsible for all transferred obligations from the date of the transfer or assignment. This means that a new entity would step into Ben & Jerry's shoes and fulfill the obligations outlined in the franchise agreement.
For a prospective franchisee, this clause provides clarity that Ben & Jerry's can sell or transfer its rights and obligations under the agreement. It also ensures that there will be a responsible party to uphold the agreement, even if the original franchisor is no longer involved.
It is important for franchisees to understand that the assignee will be bound by the existing agreement terms unless a new agreement is negotiated. Franchisees should pay attention to any notices of assignment and carefully review the terms to understand who the new responsible party is and how to contact them.