What is the purpose of the deposit that a prospective Ben Jerrys operator places with Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
y's ice cream and frozen yogurt shops that display BEN & JERRY's interior and exterior trade dress and that primarily sell at the retail shops ice cream, ice milk, sorbet, yogurt, frozen yogurt, frozen desserts, toppings, confections, novelties, fountain ingredients, other food and beverages items under the mark "Ben & Jerry's" and other proprietary marks of BEN & JERRY'S.
- B. PROSPECTIVE OPERATOR has applied to BEN & JERRY'S for the right to enter into a franchise under the System through a Ben & Jerry's Franchising, Inc. Franchise Agreement (the "Franchise Agreement"), that would give PROSPECTIVE OPERATOR the right and obligation to develop and operate a Scoop Shop at a specific location (the "Shop").
- C. BEN & JERRY'S must expend considerable time, effort, and cost during the twelve (12)-month evaluation perio
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a prospective operator places a deposit with Ben Jerrys as evidence of good faith during the Evaluation Period. Ben Jerrys expends considerable time, effort, and cost during the twelve-month evaluation period to evaluate site proposals and designs submitted by the prospective operator. The deposit demonstrates the prospective operator's serious intent while Ben Jerrys assesses the proposed locations and plans.
The deposit amount varies depending on whether the prospective operator is an existing operator in the Ben Jerrys system. If the prospective operator is new to the system, the deposit is $10,000. However, if the prospective operator already operates a Ben Jerrys franchise, the deposit is $5,000. This difference likely reflects the reduced risk and due diligence required for someone already familiar with the Ben Jerrys system.
The deposit is explicitly described as non-refundable. This means that under most circumstances, the prospective franchisee will not get this money back, even if they do not proceed with opening a Ben Jerrys location. This non-refundable aspect underscores the importance of carefully considering the opportunity and conducting thorough due diligence before submitting the deposit. It also protects Ben Jerrys by compensating them for the time and resources spent evaluating the prospective operator's proposals, regardless of the final outcome.