What is the length of the Evaluation Period for locating a site after signing a Preliminary Agreement with Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
Preliminary Agreement Deposit
If you will operate a Scoop Shop (which is not developed and operated under a Development Agreement), you will sign a Preliminary Agreement before you sign the Franchise Agreement. When you sign the Preliminary Agreement, you must pay us a non-refundable deposit (the "Preliminary Agreement Deposit"), which will be applied to your initial franchise fee. For new franchisees, the Preliminary Agreement Deposit will be $10,000; for existing franchisees, the Preliminary Agreement Deposit will be $5,000. You must locate a site during the "Evaluation Period," which is a period of twelve (12) months from the signing of the Preliminary Agreement. You may request up to two (2) six-month extensions of the Evaluation Period – each extension will be for an additional six-month period. A request for an extension of the Evaluation Period must be made to us, in writing, at least thirty (30) days prior to the expiration of the then-current Evaluation Period.
We do not require you to sign a Preliminary Agreement if you are an existing franchisee opening additional locations, or if you are entering into a franchise agreement in connection with a Development Agreement with us.
Source: Item 5 — INITIAL FEES (FDD pages 20–23)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if a prospective franchisee is planning to operate a Scoop Shop and is not doing so under a Development Agreement, they must sign a Preliminary Agreement before signing the Franchise Agreement. Upon signing the Preliminary Agreement, the franchisee is required to pay a non-refundable deposit, which is $10,000 for new franchisees and $5,000 for existing franchisees. This deposit will be applied to the initial franchise fee.
Following the signing of the Preliminary Agreement, the franchisee enters an "Evaluation Period" to locate a suitable site for their Ben Jerrys Scoop Shop. This Evaluation Period lasts for twelve (12) months from the date of signing the Preliminary Agreement.
Ben Jerrys offers some flexibility regarding the Evaluation Period. The franchisee can request up to two extensions of six months each, providing additional time to find the right location. To request an extension, the franchisee must submit a written request to Ben Jerrys at least thirty (30) days before the current Evaluation Period expires. This extension option can be valuable for franchisees who need more time to secure a favorable site.
It is important to note that the Preliminary Agreement is not required for existing franchisees opening additional locations or those entering into a franchise agreement in connection with a Development Agreement with Ben Jerrys.