What is the Ben Jerrys operator's obligation regarding insurance coverage for Off-Premises Activities, On-Demand Sales and Mobile Vending?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
7.3 As described in Section 1.2 herein, OPERATOR may engage in Off-Premises Activities, On-Demand Sales and Mobile Vending within the Territory, but only in accordance with the terms and conditions stated in this Agreement, in the Manual (including guidelines and requirements relating to insurance coverage, event size, event duration, and vehicle use relating to Off-Premises Activities, On-Demand Sales and Mobile Vending) or as otherwise provided by BEN & JERRY'S in writing.
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.
13.3 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
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, operators may engage in Off-Premises Activities, On-Demand Sales, and Mobile Vending within their designated territory. However, this is only allowed if they adhere to the terms and conditions outlined in the Franchise Agreement, the Ben Jerrys Confidential Operating Manual, or as otherwise communicated by Ben Jerrys in writing. These guidelines include specific requirements related to insurance coverage, event size, duration, and vehicle use.
Ben Jerrys requires franchisees to procure and maintain insurance policies that protect both the franchisee and Ben Jerrys against claims related to personal injury, death, property damage, loss, liability, or expenses. This insurance coverage must be in effect before construction or any operations begin and must be maintained throughout the term of the agreement. The insurance policies must meet industry standards, be written by carriers acceptable to Ben Jerrys, and name Ben Jerrys and its affiliates as additional insured parties. The types and minimum amounts of coverage must align with the specifications in the Manual or as otherwise prescribed by Ben Jerrys in writing, which may be modified over time.
Prior to starting operations and annually thereafter, Ben Jerrys franchisees must provide Certificates of Insurance to Ben Jerrys as proof of coverage. These certificates must confirm the types and minimum amounts of coverage and must guarantee that Ben Jerrys will receive at least 30 days' notice before any material alteration or cancellation of the insurance policies. If a franchisee fails to maintain the required insurance, Ben Jerrys has the right, but not the obligation, to procure the insurance and charge the franchisee for the costs incurred.