Is the initial franchise fee for a Ben Jerrys franchise refundable?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
OPERATOR had been delivered (as shown by the records of BEN & JERRY'S or of its affiliates, suppliers or distributors, whichever is applicable).
3.9 OPERATOR acknowledges and agrees that any duty or obligation imposed on BEN & JERRY'S by this Agreement may be performed by any distributor, designee, employee, or agent of BEN & JERRY'S, as BEN & JERRY'S may direct from time to time.
4. FEES
- 4.1 The initial franchise fee shall be the amount specified in Exhibit A which is paid as specified in Exhibit A and in consideration of the franchise granted herein. The initial franchise fee (as reflected in Exhibit A) shall be thirty-nine thousand five hundred dollars ($39,500), unless OPERATOR is an existing franchisee under the System prior to executing this Agreement, or unless this Agreement is executed pursuant to a Development Agreement, in which event the initial franchise fee shall be determined in accordance with the fee schedule set forth in the Development Agreement, and which amount is also set forth in Exhibit A. The initial franchise fee, receipt of which is hereby acknowledged, is earned and non-refundable in consideration of adm
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. Specifically, the FDD states that the initial franchise fee, typically $39,500 unless otherwise determined by a Development Agreement or if the operator is an existing franchisee, is earned and non-refundable. This fee covers Ben Jerrys's administrative and other expenses related to entering into the franchise agreement.
However, there are some nuances to this policy. If a Preliminary Agreement was signed and a deposit was paid, that deposit will be credited toward the initial franchise fee. Similarly, if the agreement pertains to the first or last Scoop Shop developed under a Development Agreement, the amount specified in Exhibit A as part of the development fee will be credited toward the initial franchise fee.
In certain specific cases, such as when an addendum is in place for a test shop, an initial test fee of $2,500 is also deemed non-refundable but may be credited towards the initial franchise fee if a new Franchise Agreement is entered into for the test shop. Furthermore, a Maryland Franchise Agreement Amendment notes that initial fees and payments may be deferred based on Ben Jerrys's financial condition and requirements from the Maryland Securities Commissioner, adding another layer of complexity to the fee structure and potential payment timing.