What right does Ben Jerrys grant to the DEVELOPER according to the agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
DEVELOPER and, as approved by BEN & JERRY'S, franchisee entities in which DEVELOPER owns a controlling interest, shall have the right to execute Franchise Agreements with BEN & JERRY'S for Scoop Shops to be developed under this Agreement.
Failure by DEVELOPER to adhere to the Development Schedule shall constitute a default under this Agreement.
Each Scoop Shop to be developed hereunder shall be located in the areas described in Exhibit B to this Agreement (each individual area is a "Deposit Area"), and shall be established and operated pursuant to a separate Franchise Agreement to be entered into between DEVELOPER and BEN & JERRY'S.
The Deposit Areas shall, collectively, comprise the "Development Area;" provided, however, that as of the date on which a site for a Scoop Shop to be developed within a Deposit Area is approved by BEN & JERRY'S, as set forth in this Agreement, such Deposit Area shall cease to be part of the Development Area.
- 1.2 Except as otherwise provided in this Agreement (including the rights retained by BEN & JERRY'S and its affiliates as described in Section 1.3), during the term of this Agreement, and so long as DEVELOPER is in compliance with its obligations under this Agreement, BEN & JERRY'S shall not establish or operate, or license any person to establish or operate, a Ben & Jerry's Shop under the Proprietary Marks and System at any location within the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the agreement grants the DEVELOPER (and franchisee entities in which the DEVELOPER owns a controlling interest, as approved by Ben Jerrys) the right to execute Franchise Agreements with Ben Jerrys for Scoop Shops to be developed under the agreement.
Ben Jerrys will not establish or operate, or license any person to establish or operate, a Ben & Jerry's Shop under the Proprietary Marks and System at any location within the Development Area during the term of the agreement, as long as the DEVELOPER complies with its obligations under the agreement. However, Ben Jerrys retains the rights to conduct business outside of the Development Area.
The agreement specifies that each Scoop Shop developed must be located in areas described in Exhibit B, referred to as "Deposit Areas," and operated under a separate Franchise Agreement between the DEVELOPER and Ben Jerrys. Once a site within a Deposit Area is approved by Ben Jerrys, that Deposit Area is no longer part of the overall Development Area. The DEVELOPER must adhere to the Development Schedule, and failure to do so constitutes a default under the agreement.