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Ben & Jerry's Franchise Cost & Fees

Date of Incorporation: 1977
Franchising Since: 1981
Headquarters: South Burlington, Vermont

Business Description: Ben & Jerry's Franchising, Inc. is the franchisor. Ben & Jerry’s ice cream scoop shops feature a menu of ice-cream, ice milk, sorbet, frozen yogurt, soft serve, frozen desserts, toppings, confections, novelties, fountain drinks, and other food and beverage items.

Franchise Offer: The franchisor offers franchises for Scoop Shops and Satellite Shops. Ben & Jerry's Shops offer a full range of Ben & Jerry's Products. Ben & Jerry's Shops may vary, however, in size, assortment of Products offered, design and layout, based on a variety of factors. The most common types of Scoop Shops are Full-Sized, In-line, and Kiosk. In limited markets and opportunities, the franchisor may offer a franchisee of Scoop Shops, who is not in default and satisfies criteria, the chance to operate additional locations, a franchise to operate a “Satellite” Ben & Jerry's Shop.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee the franchisee’s note, lease or obligation.

Training and Assistance: The franchisor will provide initial Scoop U Training for up to two trainees prior to the opening of the Shop, and for one additional trainee within the first six months of opening. A Scoop U-certified franchisee or manager is required at each location on a full-time and best-efforts basis. This person can include either: (a) the franchisee (as an individual or as an owner of a beneficial interest in the franchisee, who the franchisor approves) or (b) the franchisee’s manager of a soon-to-be-opened shop (if the franchisee will not be the on-premises supervisor of the shop on a full-time basis). The training program consists of lectures, presentations, conversations, field trips and hands-on experience conducted both in Scoop U as well as one or more company-owned Scoop Shops. Training support following the Shop's opening generally includes refreshing the franchisee and employees on company history, preparation of menu items, sanitation and equipment maintenance, customer service, cake decoration, use of the POS System, and other skills associated with daily operation of the Shop. The franchisee, the manager and other employees may also be required to attend additional courses, seminars, and other training programs as the franchisor may require from time to time. Every five years, the franchisee must also attend such additional courses, seminars, and other training programs as the franchisor may require.

Territory: The franchisee will not receive an exclusive territory. Under the franchise agreement, a specified location and territory will be authorized to the franchisee. The size and scope of the territory will be determined on a case-to-case basis and depends on a number of factors including market demand, population, demographics, access, visibility, and future development plans. During the term of the franchise agreement, the franchisor will not establish or operate a Shop in the defined territory except as may be permitted under the Franchise Agreement.

Term of Agreement and Renewal: The term of the franchise agreement is ten years for Scoop Shops and five years for Satellite Shops. The franchisee may renew for one additional period of ten years for Scoop Shops (unless the franchisor goes to a shorter period). There is no renewal option for Satellite Shops.

Obligations and Restrictions: The franchisee, except as the franchisor otherwise approves in writing, must devote “full time and best efforts” to the management and operation of the Shop. The franchisee may hire one or more fully-trained managers who has completed Scoop U Training to assist with the operation of the Shop so long as the franchisee maintains the full-time role as the operator of the Shop(s). The franchisee must use the premises solely to operate the Shop. The franchisee must not use the premises of the Shop for any other purpose or activity that is not provided for in the Franchise Agreement without first obtaining the franchisor’s written consent. The franchisee must keep the Shop open and in normal operation for the minimum hours and days specified in the Manual or otherwise in writing. The franchisee must sell only those products that have been expressly approved in writing and which meet the current standards as established in the Manual or otherwise in writing.

Estimated Number of Units: 585

Investment Tables:
Initial Investment for Full-Sized Scoop Shops (Approximately 750-1200 Sq.Ft)
Name of Fee Low High
Initial Franchise Fee $18,500 $18,500
Initial Franchise Fee ($18,500, if applicable, will be credited from the Deposit) $7,500 $37,000
Plans, Development & Permits $3,500 $12,000
Leasehold Improvements & Construction $80,000 $200,000
Furniture, Fixtures, Equipment, Casework, & Smallwares $65,000 $125,000
Signage $5,000 $15,000
Professional Fees $3,000 $6,000
POS, Internet Connectivity and Telephone $4,600 $5,300
Deposits $3,000 $8,000
Initial Training $1,000 $3,000
Inventory $8,000 $14,000
Insurance 500 $2,500
Grand Opening Advertising $3,000 $3,000
Additional Funds (first 3 months) $55,000 $55,000
ESTIMATED TOTAL $239,100 $485,800
Initial Investment for In-line Scoop Shops (Approximately 450-650 Sq.Ft)
Name of Fee Low High
Initial Franchise Fee $18,500 $18,500
Initial Franchise Fee ($18,500, if applicable, will be credited from the Deposit) $7,500 $37,000
Plans, Development & Permits $3,500 $12,000
Leasehold Improvements & Construction $50,000 $100,000
Furniture, Fixtures, Equipment, Casework, & Smallwares $65,000 $85,000
Signage $5,000 $10,000
Professional Fees $3,000 $6,000
POS, Internet Connectivity and Telephone $4,600 $5,300
Deposits $3,000 $8,000
Initial Training $1,000 $3,000
Inventory $6,000 $10,000
Insurance 500 $2,500
Grand Opening Advertising $3,000 $3,000
Additional Funds (first 3 months) $55,000 $55,000
ESTIMATED TOTAL $207,100 $336,800
Initial Investment for Kiosk Scoop Shops (Approximately 100-200 Sq.Ft)
Name of Fee Low High
Initial Franchise Fee $18,500 $18,500
Initial Franchise Fee ($18,500, if applicable, will be credited from the Deposit) $7,500 $37,000
Plans, Development & Permits $1,500 $5,000
Leasehold Improvements & Construction $5,000 $60,000
Kiosk Base Fee — includes front and back counters, lighting, sinks, sneeze guards, & deliverys $42,500 $60,000
Equipment, & Smallwares $24,000 $30,000
Menu Board Systems $1,585 $3,050
Signage $800 $5,000
Professional Fees $3,000 $6,000
POS, Internet Connectivity and Telephone $4,600 $5,300
Deposits $3,000 $8,000
Initial Training $1,000 $3,000
Inventory $6,000 $10,000
Insurance 500 $2,500
Grand Opening Advertising $3,000 $3,000
Additional Funds (first 3 months) $55,000 $55,000
ESTIMATED TOTAL $158,985 $292,850
Other Fees
Type of Fee Amount
Royalty 3% of Gross Sales.
Advertising Obligations Total: Varies but total will not exceed 4% of Gross Sales;

Current Allocation:
Local Advertising and Promotion: 2%;
Fund Contributions: 2%;
Cooperative Contributions: none.
Transfer $7,000
Renewal Fee $15,000
Training for New or Replacement Manager(s) The then-current fee for Scoop U Training (currently $1,800)
Refresher Training The then-current fee for Refresher Training (currently $0)
Audit by Franchisor Cost and expenses connected with inspection and audit (including travel, lodging, and wage expenses, and reasonable accounting and legal costs).
Re-Inspection Fee Will vary under circumstances.
Interest on Overdue Payments 1.5% per month, or maximum rate permitted by law.
Fee on Returned Checks The then-current fee for returned checks (currently $0)
Insurance Procurement Cost of procuring insurance for the franchisee.
Relocation Fee $3,000
Securities Offering Will vary under circumstances.
Costs and Attorneys' Fees Will vary under circumstances.
Indemnification Will vary under circumstances.
National Convention Registration Will vary.
Refurbishment Expense In the range of $5,000-$15,000 for required changes.
Product and Supplier Evaluation and Testing Fee Cost and expenses incurred by the franchisor in connection with the product/supplier evaluation and testing.

The above information has been taken from the FDD of Ben & Jerry's. Year of FDD: 2015

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