Under what condition does the restriction on engaging in a competitive business not apply to the Ben Jerrys Developer?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2 DEVELOPER covenants that, except as otherwise approved in writing by BEN & JERRY'S, DEVELOPER shall not, for a continuous uninterrupted period of two (2) years commencing upon the date of: (a) a permitted transfer under the Development Agreement; (b) expiration of the Development Agreement; (c) termination of the Development Agreement (regardless of the cause for termination); (d) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to enforcement of this Section 8; or (e) any or all of the foregoing; either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, affiliate, partnership, corporation or other entity, own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in (as owner or otherwise) any business that is significantly engaged in the sale of ice cream, sorbet, frozen yogurt and/or other frozen dessert items; and is, or is intended to be, located in the Development Area, within a five (5) mile radius of the Development Area or of any Scoop Shop operating under the System; provided, however, that this provision shall not apply to the operation by DEVELOPER of any business under the System under a franchise with BEN & JERRY'S.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, there is a specific condition under which the restriction on engaging in a competitive business does not apply to the Developer. The non-compete clause outlined in Section 8.2 does not prevent a Ben Jerrys Developer from operating any business under the Ben Jerrys system under a franchise with Ben & Jerrys.
In practical terms, this means that even though a Ben Jerrys Developer is generally restricted from owning or being involved in businesses that sell ice cream or similar frozen desserts within a specific area and time frame after the agreement ends, this restriction is lifted if the Developer is operating another Ben & Jerrys franchise. This allows a Developer to continue and expand their involvement with the Ben & Jerrys brand without violating the non-compete agreement.
This exception encourages existing Ben & Jerrys Developers to reinvest and grow within the franchise system. It ensures that experienced operators can continue to contribute to the brand's success without being penalized by the non-compete clause, as long as they remain within the Ben & Jerrys franchise network.