factual

Does the release and covenant not to sue in the Ben Jerrys agreement survive the expiration or termination of the agreement?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

This Section 18.5 shall survive the expiration or termination of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 134–358)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, Section 18.5 of the agreement, which includes the release and covenant not to sue, explicitly survives the expiration or termination of the agreement. This means that even after the franchise agreement ends, the franchisee is still bound by the terms of the release and covenant not to sue, preventing them from initiating litigation against Ben Jerrys for claims arising before or on the effective date of the agreement.

This survival clause has significant implications for prospective Ben Jerrys franchisees. It provides Ben Jerrys with long-term protection from potential lawsuits related to the franchise agreement. However, it also means that franchisees must be diligent in understanding their rights and any potential claims they may have before entering into the agreement, as these claims will be released upon signing. Franchisees should seek legal counsel to fully understand the scope of this release and covenant not to sue.

It is important to note that the release and covenant not to sue do not apply to claims arising under applicable federal and state franchise laws, except to the extent that such claims may be released by law. This provides some protection for franchisees regarding statutory rights. However, the specific laws and the extent to which they can be waived should be carefully reviewed with legal counsel. This type of clause is relatively common in franchise agreements, but the specific terms and survival periods can vary, so franchisees should always carefully review the FDD and agreement with an attorney.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.