FranchiseVerdict
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A48/100FDD 2025

Ben & Jerry’s — Litigation & Risk

Retail · FDD Items 3, 4 & 5

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Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
48 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
44
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Vermont
State whose law governs disputes — relevant if you're not based there

What drove the 48/100 rating

Risk Score Breakdown

  1. 01MINORStagnant unit growth (2.0% YoY) suggests mature/declining system despite brand strength
  2. 02MINORNo Item 19 (net income) disclosure limits ability to verify $664K revenue translates to viable profit
  3. 03HIGHActive litigation between independent board and Unilever creates governance uncertainty and potential strategic misalignment
  4. 04MINORHigh initial investment ($156.9K-$550.8K) paired with modest average revenue ($664.3K) yields thin margins before operating costs
  5. 05MINORMultiple settlements/disputes over social responsibility (Israel/West Bank, supply chain) create reputational risk and potential operational constraints
  6. 06HIGHFalse going concern status unclear but warrants immediate clarification on financial health

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.