Is the Ben Jerrys Advertising Obligation a minimum requirement or a maximum limit for advertising spending?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
may be designated by BEN & JERRY'S in writing from time to time: (i) contributions paid to the Fund, pursuant to Section 12.2 below, (ii) expenditures by OPERATOR on "local advertising and promotion" pursuant to Section 12.3, and/or (iii) contributions paid to any Cooperative, as may be established pursuant to Section 12.3.4 below. As of the Effective Date and until written notice from BEN & JERRY'S, the allocation shall be as follows: two percent (2%) of Gross Sales shall be contributed by OPERATOR to the Fund, and two percent (2%) of Gross Sales shall be spent by OPERATOR on local advertising and promotion. OPERATOR understands and acknowledges the Advertising Obligation is the minimum requirement only, and that OPERATOR may, and is encouraged to, expend additional funds for marketing and promotion.
- 12.2 BEN & JERRY'S has established a marketing fund for the system (the "Fund").
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the advertising obligation is a minimum requirement, and franchisees are encouraged to spend additional funds on marketing and promotion. Ben Jerrys reserves the right to require franchisees to spend or contribute an amount equal to 4% of their gross sales from the preceding month on advertising and promotion. This is referred to as the "Advertising Obligation".
The advertising obligation can be met through contributions to the marketing fund, expenditures on local advertising and promotion, and/or contributions to any cooperative that may be established. Currently, the allocation is 2% of gross sales contributed to the fund and 2% spent on local advertising and promotion.
This means that while Ben Jerrys requires a minimum advertising spend, franchisees have the flexibility to invest more in marketing to boost their local store's performance. However, all marketing and promotion must be approved by Ben Jerrys to ensure it aligns with brand standards.