Under what condition might Ben Jerrys offer a Franchise Agreement for less than 10 years?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in Item 17, the term of the Franchise Agreement is 10 years. We may, however, agree to enter into a Franchise Agreement for a shorter term if the lease for an otherwise acceptable site is only available for less than a 10-year term. In these cases, the franchisee will also sign a Reduced Term Addendum to Franchise Agreement ("Reduced Term Addendum") (Exhibit F to this Disclosure Document) specifying the term of the franchise.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–16)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the standard term for a Franchise Agreement is 10 years. However, Ben Jerrys may offer a shorter term if the lease available for a potential site is less than 10 years.
In such cases where the lease term is shorter than the standard franchise agreement, the franchisee will be required to sign a Reduced Term Addendum to Franchise Agreement. This addendum, referenced as Exhibit F in the FDD, will specify the actual term of the franchise, aligning it with the duration of the lease.
This exception allows Ben Jerrys to be flexible in securing locations, while it also presents a potential risk for franchisees. A shorter lease term means less time to recoup their investment and build a sustainable business. Prospective franchisees should carefully evaluate the lease terms and consider the implications of a shorter franchise agreement before signing.