What rights does Ben Jerrys retain regarding businesses outside the Development Area?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
1.3.1 To acquire, be acquired by, own, establish and/or operate, and license others to establish and operate, businesses under the Proprietary Marks and the System at any location outside of the Development Area;
1.3.2 To own, acquire, establish, and/or license others to establish and operate businesses, including those under the Proprietary Marks, selling the Products at any location outside the Development Area;
1.3.3 To own, acquire, establish, and/or operate and license others to establish or operate businesses under the Proprietary Marks, including Ben & Jerry's Shops at limited purpose, limited access, seasonal, or captive audience facilities, and other types of institutional accounts (which include airports and other public transportation facilities, parks, stadiums,
business and industrial and military complexes, theaters, amusement centers, museums, educational facilities, hospitals, and art centers) (collectively, "Institutional Facilities") at any location within or outside the Development Area. BEN & JERRY'S shall provide written notice to DEVELOPER of its intent to establish, or license another to establish, a business under the Proprietary Marks at any such Institutional Facility within the Development Area, unless the foodservice rights at such Institutional Facility are held by the owner or a contract feeder, or in the reasonable judgment of BEN & JERRY'S are not readily available to independent operators. If, within thirty (30) days of such notice, DEVELOPER obtains or demonstrates its ability (in the reasonable judgment of BEN & JERRY'S) to obtain the right to establish a Scoop Shop at such Institutional Facility in lieu of the business proposed by BEN & JERRY'S, BEN & JERRY'S shall not unreasonably withhold its consent for DEVELOPER to establish such Scoop Shop at such Institutional Facility.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben & Jerry's retains specific rights regarding businesses outside a franchisee's Development Area. Ben & Jerry's maintains the right to acquire, own, establish, operate, and license others to do the same for businesses under their Proprietary Marks. This includes selling products at any location outside the Development Area. This means that while a franchisee is granted a specific territory, Ben & Jerry's can still operate or franchise other locations outside of that area.
This right allows Ben & Jerry's to expand its brand presence and market reach beyond the territories granted to individual franchisees. It ensures that Ben & Jerry's can pursue opportunities in areas not covered by existing franchise agreements. For a potential franchisee, this means that Ben & Jerry's could establish other outlets near, but technically outside, their exclusive Development Area.
Ben & Jerry's also retains the right to operate or license Ben & Jerry's Shops at Institutional Facilities (such as airports, parks, stadiums, educational facilities, and hospitals) both within and outside the Development Area. Ben & Jerry's will provide written notice to the franchisee if they intend to establish a business under their Proprietary Marks at an Institutional Facility within the Development Area, unless the foodservice rights are held by the owner/contract feeder or are not readily available to independent operators. If the franchisee can obtain the right to establish a Scoop Shop at the Institutional Facility instead, Ben & Jerry's will not unreasonably withhold consent for the franchisee to do so.