Under what circumstances does the spending limitation on refurbishments for Ben Jerrys not apply?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
The expenditure limitations of this Section 7.17 shall not apply to renovations, redesign, refurbishment, and modernization required pursuant to either of the following: Section 2.2.7 relating to the renewal of franchise rights; or Section 14.3.6 relating to transfers under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, there are specific instances where the $15,000 spending limitation on refurbishments does not apply to the franchisee. Generally, Ben Jerrys can require a franchisee to refurbish their premises every five years to maintain brand standards, but the cost to the franchisee is capped at $15,000 during that period. This refurbishment may include structural changes, new equipment, remodeling, and redecoration.
However, the $15,000 expenditure limitation does not apply under two specific conditions. First, if the refurbishment is required as part of the renewal of franchise rights, the franchisee may be required to spend more than $15,000. Second, if the refurbishment is required due to a transfer of the franchise agreement, the spending limit is also waived.
This means that a Ben Jerrys franchisee could face significant, uncapped renovation costs if they choose to renew their franchise agreement or if they decide to transfer the franchise to a new owner. It is important for prospective franchisees to consider these potential costs when evaluating the long-term financial implications of investing in a Ben Jerrys franchise.