Under what circumstances is a Ben Jerrys franchisee NOT required to sign a Preliminary Agreement?

According to Ben Jerrys's 2025 Franchise Disclosure Document, a prospective franchisee is not always required to sign a Preliminary Agreement. Typically, if a franchisee intends to operate a Scoop Shop independently (not under a Development Agreement), they must first sign a Preliminary Agreement and pay a non-refundable deposit. This deposit is $10,000 for new franchisees and $5,000 for existing franchisees, and it is later credited towards the initial franchise fee.

However, Ben Jerrys waives the requirement for a Preliminary Agreement under two specific circumstances. First, existing franchisees who are opening additional locations are not required to sign a Preliminary Agreement. This suggests that Ben Jerrys trusts the experience and familiarity of its existing franchisees, streamlining the process for them.

Second, if a franchisee is entering into a franchise agreement in connection with a Development Agreement with Ben Jerrys, they are also exempt from signing a Preliminary Agreement. A Development Agreement typically involves a commitment to open multiple locations within a specified timeframe and area. In this case, the Development Agreement itself likely provides sufficient commitment and due diligence, making a Preliminary Agreement redundant.