What sections of the Ben Jerrys Franchise Agreement and addenda outline the fees franchisees must pay?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
iability shall not exceed the aggregate amount of the price which would have been invoiced to OPERATOR if the amount of the Products and Other Items that had actually been ordered by OPERATOR had been delivered (as shown by the records of BEN & JERRY'S or of its affiliates, suppliers or distributors, whichever is applicable).
3.9 OPERATOR acknowledges and agrees that any duty or obligation imposed on BEN & JERRY'S by this Agreement may be performed by any distributor, designee, employee, or agent of BEN & JERRY'S, as BEN & JERRY'S may direct from time to time.
4. FEES
- 4.1 The initial franchise fee shall be the amount specified in Exhibit A which is paid as specified in Exhibit A and in consideration of the franchise granted herein. The initial franchise fee (as reflected in Exhibit A) shall be thirty-nine thousand five hundred dollars ($39,500), unless OPERATOR is an existing franchisee under the System prior to executing this Agreement, or unless this Agreement is executed pursuant to a Development Agreement, in which event the initial franchise fee shall be determined in accordance with the fee schedule set forth in the Development Agreement, and which amount is also set forth in Exhibit A. The initial franchise fee, receipt of which is hereby acknowledged, is earned and non-refundable in consideration of administrative and other expenses incurred by BEN & JERRY'S in entering into this Agreement. If OPERATOR and BEN & JERRY'S have signed a Preliminary Agreement and OPERATOR has paid BEN & JERRY'S a deposit fee (the "Deposit"), the Deposit shall be credited toward the initial franchise fee. If this Agreement is executed for the first or last Scoop Shop to be developed pursuant to a Development Agreement, OPERATOR shall have paid BEN & JERRY'S the amount specified in Exhibit A as part of the development fee, and such amount shall be credited toward the initial franchise fee.
- 4.2 Each month during the term of this Agreement, OPERATOR shall pay BEN & JERRY'S a continuing royalty fee in an amount that will not exceed five percent (5.0%) of the Gross Sales (as defined in Section 4.4
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 41–43)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the fees franchisees must pay are outlined in several sections of the Franchise Agreement and its addenda. Specifically, Section 4, titled "Fees," details various fees such as the initial franchise fee, continuing royalty fees, and marketing contributions. Exhibit A to the agreement also contains information regarding fees. These sections specify the amounts, payment schedules, and conditions related to these fees.
For instance, the initial franchise fee is $39,500 unless the franchisee is an existing operator or the agreement is executed under a Development Agreement. In the latter cases, the fee is determined by the Development Agreement and also set forth in Exhibit A. Franchisees also pay continuing royalty fees, which will not exceed 5.0% of the Scoop Shop's gross sales each month. Additionally, franchisees make monthly contributions for marketing and promotion based on the Scoop Shop's gross sales, as specified in Section 12.1 of the agreement.
Furthermore, the Maryland Franchise Agreement Amendment supplements Section 4.1 of the main agreement, particularly concerning the deferral of initial fees and payments based on Ben Jerrys's financial condition and requirements from the Maryland Securities Commissioner. For franchisees entering a Test Shop Addendum, Section 4 of that addendum also outlines an initial test fee of $2,500 and continuing royalty fees, mirroring the structure in the main agreement but specific to the test shop operation. These multiple references highlight the various fee structures depending on the type of agreement and location of the franchise.