Which sections of the Franchise Agreement and Satellite Addendum describe the opening obligations for a Ben Jerrys franchise?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 4.1 of the Agreement, under the heading "Fees," shall be supplemented by the following:
4.1 …Notwithstanding the provisions of this section, based upon BEN & JERRY'S financial condition, the Maryland Securities Commissioner has required a financial assurance.
Therefore, all initial fees and payments owed by OPERATOR shall be deferred until BEN & JERRY'S completed it pre-opening obligations under the Franchise Agreement.
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- Identification of a Site for a Shop. Within the Evaluation Period, PROSPECTIVE OPERATOR agrees to locate and submit one or more proposed sites, in the manner described
below, as necessary to identify a specific site for a Shop that BEN & JERRY'S finds acceptable as described below. PROSPECTIVE OPERATOR shall submit to BEN & JERRY'S a site evaluation package ("SEP"), in a form prescribed by BEN & JERRY'S, identifying each proposed site and describing the preliminary design, relevant demographic and cost factors concerning such site. BEN & JERRY'S shall have the right to require that PROSPECTIVE OPERATOR simultaneously submit SEP's for up to three (3) proposed sites. BEN & JERRY'S shall have ten (10) business days after receipt of a SEP from PROSPECTIVE OPERATOR to approve or disapprove, in its sole discretion, the proposed site for the Shop. PROSPECTIVE OPERATOR must obtain written approval by BEN & JERRY'S of the proposed site, including its preliminary design, in the form of a "Site Authorization Notice," before executing a lease or a binding agreement to purchase the proposed site. PROSPECTIVE OPERATOR shall execute a lease that complies with Section 7 of this Preliminary Agreement or a binding agreement to purchase the site within thirty (30) days of approval of the site by BEN & JERRY'S. After execution of the lease or binding agreement to purchase the site, BEN & JERRY'S will provide PROSPECTIVE OPERATOR with a copy of the Franchise Agreement for signature.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 41–43)
What This Means (2025 FDD)
Based on the 2025 Ben Jerrys Franchise Disclosure Document, Section 4.1 of the Agreement, under the heading "Fees," is supplemented in Maryland. It states that all initial fees and payments owed by the operator shall be deferred until Ben Jerrys completes its pre-opening obligations under the Franchise Agreement. This amendment is specific to Maryland due to the requirements of the Maryland Securities Commissioner, who has required a financial assurance based on Ben Jerrys' financial condition.
Additionally, Section 6 of the Preliminary Agreement outlines the process for identifying a site for a Ben Jerrys shop. The prospective operator is responsible for locating and submitting one or more proposed sites within the evaluation period. These sites must be detailed in a site evaluation package (SEP) in a form prescribed by Ben Jerrys, including preliminary designs, demographic data, and cost factors. Ben Jerrys has the right to require SEPs for up to three proposed sites simultaneously and has ten business days to approve or disapprove each site.
Before executing a lease or binding agreement to purchase a site, the prospective operator must obtain written approval from Ben Jerrys in the form of a Site Authorization Notice. Following this approval, the operator has thirty days to execute a lease or purchase agreement that complies with Section 7 of the Preliminary Agreement. After the lease or purchase agreement is executed, Ben Jerrys will provide the Franchise Agreement for the operator's signature. These steps ensure that the site meets Ben Jerrys' standards and that the operator is committed to the location before finalizing the franchise agreement.