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Under what circumstances will Ben Jerrys have financial liability for damages resulting from the unavailability of Products?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. We will have no financial or other liability for any damages resulting from the unavailability of Products or from our inability (or the inability of our affiliates, suppliers, or distributors) for any reason to meet your order for Products, or from shortages, errors or disruptions in deliveries, except in the case of our negligence (in which case, the maximum amount of damages will not exceed the agreement amount of the price that would have been invoiced to you had the Products been delivered to you). (Franchise Agreement § 3.8.6)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 43–60)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys will have financial liability for damages resulting from the unavailability of products only in the case of their negligence. This means that if the unavailability of products is due to a reason other than Ben Jerrys's direct negligence, such as issues with affiliates, suppliers, or distributors, or general inability to meet an order, Ben Jerrys will not be financially liable.

However, even in cases of negligence, the liability is capped. The maximum amount of damages Ben Jerrys will pay is limited to the agreement amount of the price that would have been invoiced to the franchisee if the products had been delivered. This clause protects Ben Jerrys from potentially large or unforeseen damage claims due to product shortages or delivery issues.

This type of limitation of liability is common in franchise agreements. It is important for a prospective Ben Jerrys franchisee to understand that while Ben Jerrys aims to provide products in a timely manner, various factors can affect availability, and Ben Jerrys's financial responsibility is limited to specific circumstances and capped at a defined amount.

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.