What are 'Institutional Facilities' according to the Ben Jerrys Franchise Agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4.4 To own, acquire, establish, and/or operate and license others to establish and operate, Shops under the Proprietary Marks at limited purpose, limited access, and captive audience facilities, and other types of institutional accounts (which shall include airports and other public transportation facilities, parks, stadiums, business and industrial and military complexes, theaters, amusement centers, museums, educational facilities, hospitals and other health care facilities, and art centers) (collectively, "Institutional Facilities ") at any location within or outside the Territory.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, 'Institutional Facilities' are defined within the context of locations where Ben Jerrys may establish or license shops. These facilities are characterized as limited purpose, limited access, and captive audience venues. This definition is important for prospective franchisees as it clarifies the scope of locations where Ben Jerrys retains the right to operate, potentially within or outside a franchisee's territory.
Specifically, the agreement lists examples of Institutional Facilities, including airports and other public transportation facilities, parks, stadiums, business and industrial and military complexes, theaters, amusement centers, museums, educational facilities, hospitals and other health care facilities, and art centers. This enumeration provides clarity regarding the types of locations that Ben Jerrys considers as Institutional Facilities, which are excluded from any territorial protections a franchisee might otherwise expect.
This definition has significant implications for franchisees. Ben Jerrys retains the right to operate or license shops in these locations, regardless of a franchisee's territory. This means a franchisee might face competition from other Ben Jerrys locations in these venues, even if they are geographically close to the franchisee's primary Scoop Shop. Franchisees should carefully consider the potential impact of these Institutional Facilities on their business, especially if their territory includes or is near such facilities.
Prospective franchisees should inquire about Ben Jerrys's plans for developing Institutional Facilities in or near their desired territory. Understanding the potential for competition from these sources is crucial for making an informed investment decision. Franchisees may also want to negotiate for some form of protection or compensation if Ben Jerrys opens a shop in an Institutional Facility that significantly impacts their business.