What insurance requirements must a Ben Jerrys operator comply with prior to construction?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to construction, OPERATOR shall comply with the insurance requirements described in Section 13.
13. INSURANCE
- 13.1 OPERATOR shall procure, prior to the commencement of construction or any operations under this Agreement, and shall maintain in full force and effect at all times during the term of this Agreement, at OPERATOR's expense, an insurance policy or policies protecting OPERATOR, and BEN & JERRY'S against any demand or claim with respect to personal injury, death, or property damage, or any loss, liability, or expense whatsoever arising or occurring upon or in connection with the Scoop Shop, including comprehensive general liability insurance, property and casualty insurance, statutory workers' compensation insurance, and product liability insurance. Such policy or policies shall reflect industry standards, shall be written by a responsible carrier or carriers acceptable to BEN & JERRY'S, shall name BEN & JERRY'S and its affiliates as additional insureds, and shall provide at least the types and minimum amounts of coverage as are specified in the Manual, or as otherwise prescribed by BEN & JERRY'S in writing, as such may be modified by BEN & JERRY'S from time to time.
- 13.2 OPERATOR's obligation to obtain and maintain the policy or policies in the amounts specified in the Manual or otherwise in writing shall not be limited in any way by reason of any insurance which may be maintained by BEN & JERRY'S, nor shall OPERATOR's performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 20.3 of this Agreement.
- 13.3 Prior to the commencement of any operations under this Agreement, and thereafter on an annual basis, OPERATOR shall deliver to BEN & JERRY'S Certificates of Insurance evidencing the proper types and minimum amounts of coverage. OPERATOR shall also maintain Certificates of Insurance evidencing the proper types and minimum amounts of coverage at the Scoop Shop. All Certificates shall expressly provide that no less than thirty (30)
days' prior written notice shall be given to BEN & JERRY'S in the event of material alteration to or cancellation of the coverages evidenced by such Certificates.
13.4 Should OPERATOR, for any reason, fail to procure or maintain the insurance required by this Agreement, as such requirements may be revised from time to time by BEN & JERRY'S in the Manual or otherwise in writing, BEN & JERRY'S shall have the right and authority (but not the obligation) to procure such insurance and to charge the same to OPERATOR, which charges, together with a reasonable fee for the expenses of BEN & JERRY'S in so acting, shall be payable by OPERATOR immediately upon notice. The foregoing remedies shall be in addition to any other remedies BEN & JERRY'S may have.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, prior to construction or any operations, the operator must secure and maintain insurance policies. These policies should protect the operator and Ben & Jerry's against claims related to personal injury, death, property damage, loss, liability, or expenses connected to the Scoop Shop. This includes comprehensive general liability insurance, property and casualty insurance, statutory workers' compensation insurance, and product liability insurance.
The insurance policies must align with industry standards and be written by carriers acceptable to Ben & Jerry's. Ben & Jerry's and its affiliates must be named as additional insureds. The policies must provide the types and minimum amounts of coverage specified in the Manual or as otherwise prescribed by Ben & Jerry's in writing, with potential modifications over time.
Before starting any operations, and annually thereafter, the operator must provide Ben & Jerry's with Certificates of Insurance as evidence of proper coverage. These certificates must guarantee at least thirty days' prior written notice to Ben & Jerry's in case of material alterations or cancellation of coverage. If the operator fails to maintain the required insurance, Ben & Jerry's has the right to procure the insurance and charge the operator for it, including a reasonable fee for expenses.