Under what circumstances must a Ben Jerrys operator furnish certificates of insurance demonstrating compliance with the insurance provisions?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
insureds, and shall provide at least the types and minimum amounts of coverage as are specified in the Manual, or as otherwise prescribed by BEN & JERRY'S in writing, as such may be modified by BEN & JERRY'S from time to time.
- 13.2 OPERATOR's obligation to obtain and maintain the policy or policies in the amounts specified in the Manual or otherwise in writing shall not be limited in any way by reason of any insurance which may be maintained by BEN & JERRY'S, nor shall OPERATOR's performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 20.3 of this Agreement.
- 13.3 Prior to the commencement of any operations under this Agreement, and thereafter on an annual basis, OPERATOR shall deliver to BEN & JERRY'S Certificates of Insurance evidencing the proper types and minimum amounts of coverage. OPERATOR shall also maintain Certificates of Insurance evidencing the proper types and minimum amounts of coverage at the Scoop Shop.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a Ben Jerrys operator must furnish certificates of insurance under two specific circumstances. First, prior to commencing any operations under the Franchise Agreement, the operator must provide certificates of insurance. Second, the operator must provide these certificates on an annual basis thereafter. These certificates serve as evidence that the operator has secured the proper types and minimum amounts of insurance coverage as required by Ben & Jerry's.
These certificates of insurance must be maintained at the Ben & Jerrys Scoop Shop, demonstrating ongoing compliance. The certificates must also stipulate that Ben & Jerry's will receive at least thirty days' prior written notice in the event of any material alteration or cancellation of the insurance coverages. This notification period allows Ben & Jerry's time to ensure continued coverage, either by requiring the operator to reinstate the insurance or by procuring it themselves, with the costs charged to the operator.
Additionally, if the operator runs a Test Shop, they must ensure their casualty and liability insurance policies for the Scoop Shop cover the operations under the Test Shop addendum. Ben & Jerry's and its affiliates must be named as additional insureds on these policies. At Ben & Jerry's request, the operator must furnish certificates of insurance demonstrating compliance with this provision. This ensures that both the standard Scoop Shop and any Test Shop operations are adequately insured, protecting both the franchisee and Ben & Jerry's from potential liabilities.