Under what circumstances would a Ben Jerrys franchisee be charged for insurance procurement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
to attend refresher training, you may be charged a reasonable fee. As of the date of this Disclosure Document, we are not charging a fee for | 1616304423.3
| Type of Fee1/ | Amount | Due Date | Remarks |
|---|---|---|---|
| Refresher Training, but we may do so in the future, at our discretion | |||
| Audit by Franchisor | Cost and expenses connected with inspection and audit (including travel, lodging, and wage expenses, and reasonable accounting and legal costs) | Upon demand | Payable if audit reveals understatement of 3% or more in the financial reports you delivered to us |
| Re-Inspection Fee | Will vary under circumstances | Upon demand | You must reimburse us for travel expenses and room and board for our representatives if we determine based on an unsatisfactory inspection that re-inspection is required |
| Interest on Overdue Payments | 1.5% per month, or maximum rate permitted by law | Upon demand | Payable on overdue amounts. As of the date of this Disclosure Document, we are not charging such a fee but we may do so in the future, at our discretion. |
| Fee on Returned Checks | Our then-current fee for returned checks (currently $0) | Upon demand | We may charge a reasonable fee if a check that you submit to us for any monies owed to us is declined by the bank. As of the date of this Disclosure Document, we are not charging such a fee but we may do so in the future, at our |
Source: Item 6 — OTHER FEES (FDD pages 23–28)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a franchisee will be charged for insurance procurement if they fail to procure insurance themselves. In this case, Ben Jerrys reserves the right to obtain insurance on behalf of the franchisee, and the franchisee is responsible for covering the cost. This fee is due upon demand.
This policy ensures that all Ben Jerrys locations maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. It is a fairly standard practice in franchising for franchisors to have such a clause to ensure brand protection and compliance with minimum coverage requirements.
For a prospective Ben Jerrys franchisee, this means it is crucial to maintain current insurance policies that meet Ben Jerrys's requirements. Failure to do so will result in the franchisor stepping in to secure coverage, and the franchisee will be responsible for reimbursing Ben Jerrys for the cost of the insurance. This could potentially be more expensive than if the franchisee secured insurance independently, so it is in the franchisee's best interest to handle insurance procurement proactively.