Under what conditions is the initial franchise fee for a Ben Jerrys franchise determined by a Development Agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee (as reflected in Exhibit A) shall be thirty-nine thousand five hundred dollars ($39,500), unless OPERATOR is an existing franchisee under the System prior to executing this Agreement, or unless this Agreement is executed pursuant to a Development Agreement, in which event the initial franchise fee shall be determined in accordance with the fee schedule set forth in the Development Agreement, and which amount is also set forth in Exhibit A.
If this Agreement is executed for the first or last Scoop Shop to be developed pursuant to a Development Agreement, OPERATOR shall have paid BEN & JERRY'S the amount specified in Exhibit A as part of the development fee, and such amount shall be credited toward the initial franchise fee.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the initial franchise fee is determined by the Development Agreement when the franchise agreement is executed pursuant to a Development Agreement. In this case, the initial franchise fee will follow the fee schedule outlined in the Development Agreement itself, as detailed in Exhibit A.
Specifically, if the agreement is for the first Scoop Shop to be developed under a Development Agreement, the amount specified in Exhibit A, paid as part of the development fee, will be credited toward the initial franchise fee. For subsequent Scoop Shops developed under the same agreement, a portion of the development fee is credited towards the initial franchise fee, with the remaining balance paid upon execution of the franchise agreement.
This arrangement provides clarity and structure for franchisees planning multiple locations, as the initial franchise fee is integrated into the broader development plan. Prospective franchisees should carefully review the Development Agreement and Exhibit A to understand the specific fee schedule and payment terms applicable to their situation.