In resolving disputes with Ben Jerrys, can proceedings be part of a class action?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 26.4 of the Agreement, under the heading "Applicable Law," shall be deleted in its entirety, and shall have no force or effect; and the following shall be substituted in lieu thereof:
26.4 Any legal action brought by any party against the other in any forum or court, whether federal or state, shall be brought only within the judicial district in which BEN & JERRY'S has its principal place of business at the time the action or proceeding is initiated**, except with respect to claims**
arising under the Maryland Franchise Registration and Disclosure Law. Any such action shall be brought in federal court if federal court jurisdiction exists and, if it does not exist, then in state court. The parties agree that this Section 26.4 shall not be construed as preventing either party from removing an action from state to federal court. The parties hereby waive all questions of personal jurisdiction or venue for the purpose of carrying out this provision. Any such action shall be conducted on an individual basis, and not as part of a consolidated, common, representative, or class action.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, any legal action must be conducted on an individual basis. This means a franchisee cannot participate in a class action against Ben & Jerrys.
Specifically, the FDD states that any legal action, whether in federal or state court, must be brought only within the judicial district where Ben & Jerrys has its principal place of business at the time the action is initiated. There is an exception for claims arising under the Maryland Franchise Registration and Disclosure Law. However, even with this exception, the document explicitly states that any such action must be conducted on an individual basis and cannot be part of a consolidated, common, representative, or class action.
This clause is intended to prevent franchisees from joining together in a single lawsuit against Ben & Jerrys. It forces each franchisee to pursue their claims individually, which can be more expensive and time-consuming for the franchisee. While this may reduce Ben & Jerrys's risk of large class-action lawsuits, it could also discourage franchisees from pursuing legitimate claims due to the increased burden of individual litigation.