Under what condition is a Ben Jerrys franchisee NOT required to sign a Preliminary Agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not require you to sign a Preliminary Agreement if you are an existing franchisee opening additional locations, or if you are entering into a franchise agreement in connection with a Development Agreement with us.
Source: Item 5 — INITIAL FEES (FDD pages 20–23)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a prospective franchisee is not required to sign a Preliminary Agreement under two specific conditions. First, if an existing franchisee is opening additional locations, they are exempt from signing a Preliminary Agreement. Second, if the franchisee is entering into a franchise agreement in connection with a Development Agreement with Ben Jerrys, they are also not required to sign a Preliminary Agreement.
For new franchisees who plan to operate a Scoop Shop without a Development Agreement, signing a Preliminary Agreement is a standard step before the Franchise Agreement. This agreement requires a non-refundable deposit of $10,000 for new franchisees, which is applied to the initial franchise fee. Existing franchisees opening additional locations pay a reduced deposit of $5,000 under the Preliminary Agreement.
The purpose of the Preliminary Agreement is to allow the franchisee an "Evaluation Period" of twelve months to locate a suitable site for their Scoop Shop. Franchisees can request up to two six-month extensions to this period, providing additional time for site selection. However, these extensions must be requested in writing at least thirty days before the current Evaluation Period expires. This process ensures that franchisees have adequate time to find an appropriate location while committing to the Ben Jerrys franchise.