What representation does the Developer make to Ben Jerrys regarding prohibited transactions?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2 DEVELOPER represents and warrants to BEN & JERRY'S that neither DEVELOPER (including any and all of its employees, directors, officers and other representatives), or the funding sources for either is a person or entity designated with whom BEN & JERRY'S or any of its affiliates, are prohibited by law from transacting business.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the Developer makes a specific representation regarding prohibited transactions. The Developer warrants to Ben Jerrys that neither the Developer, including its employees, directors, officers, and representatives, nor the funding sources for the Developer, are persons or entities with whom Ben Jerrys or its affiliates are legally prohibited from conducting business.
This representation is crucial for Ben Jerrys as it ensures compliance with various laws and regulations that restrict transactions with certain individuals or entities, such as those on government watch lists or those involved in illegal activities. By obtaining this warranty, Ben Jerrys aims to avoid any legal or reputational risks associated with transacting with prohibited parties.
For a prospective Ben Jerrys franchisee, this means they must ensure that their business operations and funding sources are fully compliant with all applicable laws and regulations regarding prohibited transactions. Failure to do so could result in a breach of the franchise agreement and potential legal consequences. It is advisable for potential developers to conduct thorough due diligence on their funding sources and business practices to ensure compliance with this representation.