Is the initial franchise fee for a Ben Jerrys Scoop Shop refundable?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
u are entering into a franchise agreement in connection with a Development Agreement with us.
Initial Franchise Fee
Scoop Shops
When you sign a Franchise Agreement for a Scoop Shop you must pay us the initial franchise fee, which is $39,500, except in the circumstances described below. If you are an existing franchisee and you enter into a Franchise Agreement for an additional Scoop Shop, your initial franchise fee will be $19,750. The initial franchise fee is earned and non-refundable in consideration of administrative and other expenses we incur in entering into the Franchise Agreement. If you signed a Preliminary Agreement, the Preliminary Agreement Deposit (as defined above) will be credited toward the initial franchise fee.
As described in Item 1, Scoop Shops will generally be for a term of 10 years. We may, however, in certain circumstances agree to offer Scoop Shop franchises for shorter terms. If we agree to a shorter term, then the initial franchise fee due for that Scoop Shop will be an amount equal to $39,500 prorated according on the number of years in the term (for example, for a Shop with a 5-year term, the initial franchise fee will be $19,750). The Reduced Term Addendum that will be signed for any Scoop Shop with a term shorter than 10 years will specify the amount of the initial franchise fee. Unless otherwise stated, any references to initial franchise fees in this Disclosure Document assume that the franchise for a Scoop Shop is for 10 years.
We may reduce, defer or waive the initial franchise fee for other Ben & Jerry's Shops that require an entry fee to obtain a site or when a unique or compelling situation warrants. During our last fiscal year ended December 31, 2024, we had a range of initial fees of $0 to $39,500. The reduction in initial fees was due to franchisee candidates that qualified for our then-current incentive programs.
Satellite Shops
If you enter into a Satellite Addendum with us, the initial satellite fee is $8,000 and is earned and non-refundable in consideration of administrative and other expenses we incur in entering into the Franchise Agreement and Satellite Addendum.
Test Shops
If you are an existing franchisee and we approve you to operate a Test Shop, then you will sign a Test Shop Addendum to Existing Franchise Agreement and pay us a test fee of $2,500 (if you already have more than one Scoop Shop, the Test Shop Addendum will apply to the Franchise Agreement that you most recently signed). The test fee is earned and non-refundable in consideration of administrative and other expenses we incur in entering into the Test Shop Addendum. As described in Item 1, if you desire to continue operating the Test Shop beyond the term of the Test Shop Addendum and we approve your Test Shop to become a permanent Scoop Shop, then we will enter into a separate Franchise Agreement for that location. We will then credit the test fee that you paid toward the initial franchise fee due under the Franchise Agreement.
Development Fees and Franchise Fees For Scoop Shops under a Development Agreement
If you sign a Development Agreement, the amount of the initial franchise fee(s) for the Scoop Shops that you will develop will depend upon whether you are already an existing franchisee under our System at the time you sign the Development Agreement. The initial franchise fee(s) and Development Fee (as defined below), for a new franchisee in our System prior to signing a Development Agreement, will be $39,500 for the first Scoop Shop, and $19,750 for the second and each additional Scoop Shop. If you are an existing franchisee in our System, the initial franchise fee(s) and Development Fee will be $19,750 for the first Scoop Shop, and $16,000 for the second and each additional Scoop Shop.
Source: Item 5 — INITIAL FEES (FDD pages 20–23)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the initial franchise fee for a Scoop Shop is generally not refundable. Specifically, the FDD states that the initial franchise fee is earned and non-refundable in consideration of administrative and other expenses Ben Jerrys incurs in entering into the Franchise Agreement. The standard initial franchise fee for a Scoop Shop is $39,500, though this can be prorated for shorter-term agreements or reduced/waived under specific incentive programs.
However, if you are required to sign a Preliminary Agreement, you must pay a non-refundable deposit, which is $10,000 for new franchisees and $5,000 for existing franchisees. This deposit is applied towards the initial franchise fee. Therefore, while the initial franchise fee itself is non-refundable, the preliminary deposit is also non-refundable, meaning that a portion of the funds required to start the franchise are non-refundable from the outset.
There are also specific fees for Satellite Shops and Test Shops. The initial satellite fee is $8,000, and the test fee is $2,500, both of which are non-refundable. However, the test fee can be credited towards the initial franchise fee if the Test Shop becomes a permanent Scoop Shop. Development Fees, which are required under a Development Agreement, are also non-refundable, regardless of whether Franchise Agreements are ever signed for the Scoop Shops. However, a portion of the Development Fee may be credited towards the initial franchise fee when signing Franchise Agreements under the Development Schedule.
In summary, while the initial franchise fee for a Ben Jerrys Scoop Shop is generally non-refundable, there are some instances where fees can be credited towards it. Prospective franchisees should carefully consider these non-refundable fees and deposits, as well as the conditions under which credits may be applied, before entering into any agreements with Ben Jerrys.