What obligation does the DEVELOPER undertake in the Ben Jerrys agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
3. DEVELOPMENT OBLIGATIONS
3.1 Recognizing that time is of the essence, DEVELOPER shall comply strictly with the Development Schedule. DEVELOPER acknowledges and agrees that the Development Schedule requires that DEVELOPER have executed and delivered Franchise Agreements for a cumulative number of Scoop Shops and opened a cumulative number of Scoop Shops within the time periods specified.
3.2 DEVELOPER agrees to locate and submit specific sites for Scoop Shops. DEVELOPER shall submit to BEN & JERRY'S a site evaluation package ("SEP"), in a form prescribed by BEN & JERRY'S, identifying each proposed site and describing the preliminary design, relevant demographic and cost factors concerning each site. BEN & JERRY'S shall have the right to require that DEVELOPER simultaneously submit SEPs for up to three (3) proposed sites. BEN & JERRY'S shall have ten (10) business days after receipt of a SEP from DEVELOPER to approve or disapprove each proposed site for each Scoop Shop. DEVELOPER must obtain written approval by BEN & JERRY'S of each proposed site, which will be in the form of a "Site Authorization Notice." DEVELOPER shall execute a lease that complies with the requirements set forth below, or a binding agreement to purchase each site within thirty (30) days of approval of each site by BEN & JERRY'S. Within seven (7) days after executing a lease or a binding purchase agreement for each site, DEVELOPER shall execute and deliver to BEN & JERRY'S the Franchise Agreement that shall be provided to DEVELOPER by BEN & JERRY'S for execution, which shall be the form of Franchise Agreement determined in accordance with Section 3.5 below.
3.3 If DEVELOPER will occupy the premises from which the Scoop Shop is operated under a lease or sublease, DEVELOPER shall, prior to the execution of the lease, submit the lease to BEN & JERRY'S for its review to ensure that the lease contains the conditions set forth in the Ben & Jerry's Lease Rider which may include, but are not limited to:
a.
That the initial term of the lease, or the initial term together with renewal terms, shall be for ten (10) years, unless otherwise approved in writing by BEN & JERRY'S;
- b.
That the lessor consents to DEVELOPER'S use of such Proprietary Marks and initial signage as BEN & JERRY'S may prescribe for the Scoop Shop;
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the DEVELOPER has several obligations under the Development Agreement. The DEVELOPER must strictly adhere to the Development Schedule, which requires the DEVELOPER to execute and deliver Franchise Agreements and open a specific number of Scoop Shops within specified time periods. Failure to meet the Development Schedule constitutes a default under the agreement.
Another key obligation is for the DEVELOPER to locate and submit potential sites for Ben Jerrys Scoop Shops. This involves providing Ben Jerrys with a site evaluation package (SEP) that includes preliminary designs, demographic information, and cost factors for each proposed site. Ben Jerrys has the right to require SEPs for up to three sites simultaneously and has ten business days to approve or disapprove each site. The DEVELOPER must obtain written approval in the form of a Site Authorization Notice from Ben Jerrys for each site.
Within thirty days of site approval, the DEVELOPER must execute a lease or a binding agreement to purchase the site. If leasing, the DEVELOPER must submit the lease to Ben Jerrys for review before execution to ensure it contains conditions set forth in the Ben & Jerry's Lease Rider, such as an initial lease term (or with renewals) of ten years, unless otherwise approved by Ben Jerrys. Within seven days of executing a lease or purchase agreement, the DEVELOPER must execute and deliver the Franchise Agreement provided by Ben Jerrys.