Under what circumstances might Ben Jerrys require owners of a beneficial interest in the transferee to guarantee the transferee's performance?

According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys may require owners of a beneficial interest in the transferee to guarantee the transferee's performance under certain conditions. Specifically, if the transferee is not an individual, Ben Jerrys retains the right to request that the owners of a beneficial interest in the transferee provide a written guarantee, in a form designated by Ben Jerrys, ensuring the performance of the transferee's obligations. This measure provides Ben Jerrys with an additional layer of security, ensuring that the financial and operational responsibilities of the franchise are met, even if the direct transferee is an entity rather than an individual.

This requirement is part of Ben Jerrys's broader strategy to ensure that all franchisees, including those operating under a transferred agreement, meet the brand's standards and obligations. By having owners of a beneficial interest guarantee the transferee's performance, Ben Jerrys aims to mitigate the risks associated with transferring franchise ownership to entities, which may have more complex ownership structures and potentially less direct accountability. This helps maintain consistency and quality across all Ben Jerrys locations.

For a prospective franchisee, this means that if you plan to acquire a Ben Jerrys franchise through a transfer and your ownership structure involves a business entity, you should be prepared for the possibility that Ben Jerrys will require personal guarantees from the individuals who have a beneficial interest in that entity. This is a standard practice in franchising to ensure accountability and financial stability, and it is important to understand this potential obligation before proceeding with a franchise transfer.