factual

What sections of the Ben Jerrys agreement relate to renovations where the expenditure limitations do not apply?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

The expenditure limitations of this Section 7.17 shall not apply to renovations, redesign, refurbishment, and modernization required pursuant to either of the following: Section 2.2.7 relating to the renewal of franchise rights; or Section 14.3.6 relating to transfers under this Agreement.

Source: Item 22 — CONTRACTS (FDD pages 133–134)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, there are specific instances where the expenditure limitations on renovations do not apply. Generally, Ben Jerrys limits the amount a franchisee must spend on refurbishing their premises to $15,000 within a five-year period. This refurbishment is to maintain the store's design, trade dress, color schemes, and presentation of proprietary marks, aligning with the current image of new Scoop Shops.

However, the $15,000 expenditure limit does not apply under two specific sections of the Ben Jerrys Franchise Agreement. These exceptions are Section 2.2.7, which pertains to the renewal of franchise rights, and Section 14.3.6, which concerns transfers under the agreement. This means that if renovations, redesign, refurbishment, or modernization are required as part of renewing the franchise or transferring ownership, the franchisee may be required to spend more than $15,000.

For a prospective Ben Jerrys franchisee, this is an important consideration. While the standard refurbishment costs are capped, costs associated with renewal or transfer can exceed this limit. It would be prudent to inquire about the potential scope and cost of renovations that might be required during a renewal or transfer scenario to better prepare for these potential expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.