After termination or expiration of the Ben Jerrys Development Agreement, what rights does the developer lose regarding Scoop Shop operation?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.4 Upon termination or expiration of this Agreement, all rights granted hereunder to DEVELOPER shall terminate and DEVELOPER shall have no right to establish or operate any Scoop Shop for which a Franchise Agreement has not been executed by BEN & JERRY'S at the time of termination.
Thereafter, BEN & JERRY'S shall be entitled to establish, and to franchise others to establish, Scoop Shops in the Development Area, except as may be otherwise provided under any Franchise Agreement that has been executed between BEN & JERRY'S and DEVELOPER.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, upon termination or expiration of the Development Agreement, the developer loses all rights granted under the agreement. Specifically, the developer has no right to establish or operate any Scoop Shop for which a Franchise Agreement has not been executed by Ben Jerrys at the time of termination or expiration.
After the agreement's termination or expiration, Ben Jerrys is entitled to establish Scoop Shops and franchise others to do so within the Development Area. This is with the exception of any Franchise Agreement that has already been executed between Ben Jerrys and the developer.
This means that a developer who fails to meet the development schedule or otherwise defaults on the Development Agreement risks losing the opportunity to open all planned Scoop Shops, except those for which individual Franchise Agreements are already in place. A prospective Ben Jerrys developer should carefully consider the development schedule and ensure they have the resources to meet it to avoid losing these rights.