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What sections of the Preliminary Agreement outline the site selection and acquisition/lease obligations for a Ben Jerrys franchise?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

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    1. No Franchise Rights. No offer by BEN & JERRY'S to grant a franchise to PROSPECTIVE OPERATOR shall be made except by a written document specifically identified as a Ben & Jerry's Franchise Agreement which is executed by an officer of BEN & JERRY'S. This Preliminary Agreement is not an offer of a franchise or a commitment or promise by BEN & JERRY'S to offer PROSPECTIVE OPERATOR a franchise. Unless and until a Franchise Agreement is signed by BEN & JERRY'S, PROSPECTIVE OPERATOR shall not use the "Ben & Jerry's" marks or system, nor shall PROSPECTIVE OPERATOR at any time make any representations or commitment on behalf of BEN & JERRY'S.
    1. Application. PROSPECTIVE OPERATOR agrees to make all applications and provide all information reasonably requested by BEN & JERRY'S to evaluate PROSPECTIVE OPERATOR's qualifications and suitability to enter into a Franchise Agreement with BEN & JERRY'S.
    1. 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.

    1. Leases. If PROSPECTIVE OPERATOR will occupy the premises from which the Shop is operated under a lease or sublease, PROSPECTIVE OPERATOR shall, prior to the execution of the lease, submit the lease to BEN & JERRY'S for its review to ensure that the lease contains the conditions set forth in the Ben & Jerry's Lease Rider which may include, but are not limited to:
  • a. That the initial term of the lease, or the initial term together with renewal terms, shall be for ten (10) years, unless a shorter term is approved by BEN & JERRY'S;
  • b. That the lessor consents to PROSPECTIVE OPERATOR's use of such Proprietary Marks (as defined in the Franchise Agreement) and initial signage as BEN & JERRY'S may prescribe for the Shop;
  • c. That the use of the premises be restricted solely to the operation of the Shop;
  • d. That the lessor provide to BEN & JERRY'S copies of any and all notices of default given to PROSPECTIVE OPERATOR under the lease; and
  • e. That BEN & JERRY'S have the right to enter the premises to make modifications necessary to protect the Proprietary Marks or the System or to cure any default under the Franchise Agreement.
    1. Confidentiality.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 41–43)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, several sections within the Preliminary Agreement outline the obligations for site selection and acquisition/lease. Section 6 of the Preliminary Agreement requires the prospective operator to locate and submit one or more proposed sites within the evaluation period. The prospective operator must submit a site evaluation package (SEP) in a prescribed form, detailing the preliminary design, demographic, and cost factors. Ben & Jerry's has the right to request SEPs for up to three proposed sites simultaneously and has ten business days to approve or disapprove a site after receiving the SEP.

Before executing a lease or binding purchase agreement, the prospective operator must obtain written approval of the proposed site, including its preliminary design, in the form of a Site Authorization Notice from Ben & Jerry's. The prospective operator is then required to execute a lease or binding agreement to purchase the site within thirty days of Ben & Jerry's approval. After the lease or purchase agreement is executed, Ben & Jerry's will provide the Franchise Agreement for signature.

Furthermore, Section 7 of the Preliminary Agreement specifies the lease conditions. If the prospective operator will lease the premises, the lease must be submitted to Ben & Jerry's for review before execution. The lease should include conditions outlined in the Ben & Jerry's Lease Rider, such as an initial term of ten years (unless a shorter term is approved), lessor consent for the use of proprietary marks and initial signage, restriction of premises use solely to the Ben & Jerry's shop, provision of default notices to Ben & Jerry's, and Ben & Jerry's right to enter the premises for modifications or to cure defaults under the Franchise Agreement. Section 13 also states that the prospective operator represents that they have not executed a lease for the shop and will only do so after obtaining site approval from Ben & Jerry's, with failure to comply resulting in a non-curable default and potential termination of the agreement.

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.