What outstanding obligations would prevent a Ben Jerrys operator from renewing their franchise agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
substantially complied with all the terms and conditions of such agreements during the terms thereof;
- 2.2.4 OPERATOR, any owner with a beneficial interest in OPERATOR (an "Owner") as listed in Exhibit C to this Agreement, and any franchisee, operator, licensee or developer of BEN & JERRY'S in which OPERATOR and/or any Owner has a beneficial interest, shall execute a general release, in a form prescribed by BEN & JERRY'S, of any and all claims against BEN & JERRY'S and its affiliates, and their respective officers, directors, agents, and employees;
- 2.2.5 OPERATOR and its Owners shall execute the then-current form of franchise agreement and guarantee offered by BEN & JERRY'S, which shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement including requirements to pay a royalty fee and a higher marketing contribution, except that OPERATOR shall not be required to pay any initial franchise fee and the Territory shall remain the same;
- 2.2.6 OPERATOR shall comply with the then-current qualification and training requirements of BEN & JERRY'S;
- 2.2.7 OPERATOR shall make or provide for, in a manner satisfactory to BEN & JERRY'S, such renovation and modernization of the Premises of the Scoop Shop as BEN & JERRY'S may reasonably require, including installation of new equipment and renovation of signs, furnishings, fixtures, and decor to reflect the then-current standards and image of the System;
- 2.2.8 OPERATOR shall present evidence satisfactory to BEN & JERRY'S that OPERATOR has the right to remain in possession of the Premises for the duration of the renewal term; and
- 2.2.9 OPERATOR shall pay BEN & JERRY'S a renewal fee in an amount of Twelve Thousand Dollars ($12,000).
- 2.3 If OPERATOR does not sign a renewal Franchise Agreement by the end of the term of this Agreement and continues to accept the benefits of this Agreement after the expiration of this Agreement, then at the option of BEN & JERRY'S, this Agreement may be treated either as (i) expired as of the end of the term, with OPERATOR then operating without a franchise to do so and in violation of BEN & JERRY'S's rights; or (ii) continued on a month-tomonth basis ("**Inte
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, several obligations must be met to renew a franchise agreement. The operator must execute the current franchise agreement and guarantee, complying with qualification and training requirements. The operator is not required to pay an initial franchise fee, and the territory remains the same. However, the terms of the renewed agreement may differ, potentially including higher royalty fees and marketing contributions.
Additionally, the Ben Jerrys operator must renovate and modernize the Scoop Shop premises to meet the current system standards, including new equipment, signs, furnishings, fixtures, and decor. They must also provide evidence that they have the right to remain in possession of the premises for the renewal term. Finally, the operator must pay Ben Jerrys a renewal fee of $12,000.
Failure to meet these conditions would prevent a Ben Jerrys operator from successfully renewing their franchise agreement. It is important to note that if an operator continues to operate after the agreement's expiration without signing a renewal, Ben Jerrys can treat the agreement as either expired or continued on a month-to-month basis, during which all obligations remain in effect.