From whom can Ben Jerrys request executed covenants similar to those in Section 17?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.8 At the request of BEN & JERRY'S, OPERATOR shall obtain and furnish to BEN & JERRY'S executed covenants similar in substance to those set forth in this Section 17 (including covenants applicable upon the termination of a person's relationship with OPERATOR) and the provisions of Sections 10 and 16 of this Agreement (as modified to apply to an individual) from any or all of the following persons: (a) all managers of OPERATOR and any other personnel employed by OPERATOR who have received or will receive training from BEN & JERRY'S; (b) all officers, directors, and holders of a beneficial interest of one percent (1%) or more of the securities of OPERATOR, and of any corporation or limited liability company directly or indirectly controlling, controlled by, or under common control with, OPERATOR, if OPERATOR is a corporation; and (c) the general partners and any limited partners (including any corporation or limited liability company, and the officers, directors, and holders of a beneficial interest of one percent (1%) or more of the securities of any corporation or limited liability company which controls, directly or indirectly, any general or limited partner), if OPERATOR is a partnership.
Every covenant required by this Section 17.8 shall be in a form approved by BEN & JERRY'S, including specific identification of BEN & JERRY'S as a third-party beneficiary of such covenants with the independent right to enforce them.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys can request executed covenants similar to those in Section 17 from several individuals associated with the Operator (franchisee). These individuals include all managers of the Operator and any other personnel employed by the Operator who have received or will receive training from Ben Jerrys.
Additionally, Ben Jerrys can request these covenants from all officers, directors, and holders of a beneficial interest of one percent (1%) or more of the securities of the Operator. This also applies to any corporation or limited liability company directly or indirectly controlling, controlled by, or under common control with, the Operator, if the Operator is a corporation.
If the Operator is a partnership, Ben Jerrys can request the covenants from the general partners and any limited partners, including any corporation or limited liability company, and the officers, directors, and holders of a beneficial interest of one percent (1%) or more of the securities of any corporation or limited liability company which controls, directly or indirectly, any general or limited partner. The covenants must be in a form approved by Ben Jerrys, explicitly identifying Ben Jerrys as a third-party beneficiary with the independent right to enforce them.