Under what condition does the Guarantee for a Ben Jerrys franchise terminate?

According to Ben Jerrys's 2025 Franchise Disclosure Document, the guarantee provision terminates upon the termination or expiration of the Franchise Agreement. However, any obligations or liabilities of the guarantor that arose from events occurring on or before the termination date remain in full effect until they are satisfied or discharged. Additionally, any covenants that are designed to continue after the agreement's termination will remain in force according to their specific terms.

In the event of the death of a guarantor, their estate will be bound by the guarantee, but only for defaults and obligations existing at the time of death. The obligations of any other guarantors will continue in full force. This ensures that Ben Jerrys maintains financial protection even if the original agreement ends or a guarantor passes away, covering any outstanding debts or responsibilities.

The terms used in the guarantee provision have the same meaning as in the Franchise Agreement and are interpreted under the laws of Vermont. If the Scoop Shop is located outside of Vermont and a provision is unenforceable under Vermont law, the laws of the state where the Scoop Shop is located will govern that specific provision. This ensures that the guarantee is enforceable and complies with local laws, providing Ben Jerrys with a legally sound financial safeguard.

This guarantee provision protects Ben Jerrys from financial losses due to the operator's failure to meet their obligations. Prospective franchisees should carefully review the terms of the guarantee and understand their responsibilities, especially concerning events leading up to the termination or expiration of the agreement. Franchisees should also be aware of how the guarantee is affected by the death of a guarantor and how different state laws might apply based on the location of the Scoop Shop.