How much advance notice must the Certificates of Insurance for Ben Jerrys franchisees provide before cancellation or modification?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, franchisees must provide the company with at least 30 days' prior written notice if there are any material alterations to or cancellations of their insurance coverage. This requirement is in place to ensure that Ben Jerrys is protected against potential liabilities and that the franchisee maintains adequate insurance coverage as specified in the franchise agreement.
This 30-day notice period allows Ben Jerrys sufficient time to assess the impact of any changes to the insurance coverage and to take necessary steps to protect its interests. For example, if a franchisee's policy is canceled, Ben Jerrys has the right to procure its own insurance on behalf of the franchisee, with the franchisee bearing the costs and a reasonable fee for Ben Jerrys's expenses.
It is important for prospective Ben Jerrys franchisees to understand and comply with these insurance requirements to avoid potential breaches of the franchise agreement. Failure to maintain the required insurance coverage or to provide timely notice of changes can result in penalties, including termination of the franchise agreement. This is a fairly standard clause in franchise agreements to protect the brand and ensure consistent risk management across all locations.