After termination or expiration of the Ben Jerrys Development Agreement, can Ben Jerrys establish or franchise others to establish Scoop Shops in the Development Area?

According to Ben Jerrys's 2025 Franchise Disclosure Document, upon termination or expiration of the Development Agreement, Ben Jerrys has the right to establish or franchise others to establish Scoop Shops in the Development Area. However, this is with the exception of any Franchise Agreement that has already been executed between Ben Jerrys and the developer. This means that if a franchisee has already signed a Franchise Agreement for a specific Scoop Shop location within the Development Area, that agreement remains in effect, and Ben Jerrys cannot establish or franchise another shop at that specific location.

This clause protects Ben Jerrys's interests by allowing them to continue expanding their brand even if a Development Agreement ends. It also provides a degree of protection for existing franchisees who have already committed to a location and signed a Franchise Agreement.

For a prospective Ben Jerrys franchisee, this means that the rights to a specific location are generally secure once a Franchise Agreement is signed, even if the broader Development Agreement is terminated. However, it's crucial to understand the terms of both the Development Agreement and the Franchise Agreement to fully grasp the rights and obligations of all parties involved. Franchisees should pay close attention to the conditions under which the Development Agreement can be terminated and how that might affect their individual franchise agreements.