Under what circumstances will Ben Jerrys provide written notice to the DEVELOPER before establishing a business under the Proprietary Marks at an Institutional Facility within the Development Area?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
BEN & JERRY'S shall provide written notice to DEVELOPER of its intent to establish, or license another to establish, a business under the Proprietary Marks at any such Institutional Facility within the Development Area, unless the foodservice rights at such Institutional Facility are held by the owner or a contract feeder, or in the reasonable judgment of BEN & JERRY'S are not readily available to independent operators. If, within thirty (30) days of such notice, DEVELOPER obtains or demonstrates its ability (in the reasonable judgment of BEN & JERRY'S) to obtain the right to establish a Scoop Shop at such Institutional Facility in lieu of the business proposed by BEN & JERRY'S, BEN & JERRY'S shall not unreasonably withhold its consent for DEVELOPER to establish such Scoop Shop at such Institutional Facility.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys will provide written notice to the DEVELOPER of its intent to establish, or license another to establish, a business under the Proprietary Marks at any Institutional Facility within the Development Area. Institutional Facilities include locations such as airports, public transportation facilities, parks, stadiums, business and industrial and military complexes, theaters, amusement centers, museums, educational facilities, hospitals, and art centers.
However, there are exceptions to this notification requirement. Ben Jerrys is not obligated to provide written notice if the foodservice rights at such Institutional Facility are held by the owner or a contract feeder. Additionally, if Ben Jerrys reasonably judges that the foodservice rights are not readily available to independent operators, they are not required to provide notice.
If the DEVELOPER receives notice and can obtain or demonstrate the ability to obtain the right to establish a Scoop Shop at the Institutional Facility instead of Ben Jerrys's proposed business within thirty (30) days of the notice, Ben Jerrys will not unreasonably withhold consent for the DEVELOPER to establish the Scoop Shop. This clause provides an opportunity for the DEVELOPER to secure a location within their Development Area that Ben Jerrys was considering for its own or another licensee's business.