Does Ben Jerrys or its affiliates receive compensation from suppliers, and if so, how may Ben Jerrys use these amounts?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
e may designate a single supplier, which may be us or one of our affiliates, for any products, equipment, supplies, or services, in which event you must purchase such items exclusively from the designated supplier. We and/or our affiliates may receive payments or other compensation from suppliers on account of the suppliers' dealings with us, you, or other Ben & Jerry's Shops in the System. We may use any amounts that we receive from suppliers for any purpose that we deem appropriate. We and/or our affiliates may negotiate supply contracts with our suppliers under which we are able to purchase products (including Products), equipment, supplies, and services at a price lower than that at which our franchisees are able to purchase the same items.
Product and Supplier Approvals and Specifications
If you want to purchase unapproved products, or equipment, supplies, services, or Non-Proprietary Products (the "Non-Proprietary Item(s)") from other than approved suppliers, you must submit a request to us in writing, together with the samples or other evidence of conformity with our specifications as we reasonably require. We will have the right to require that our representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be evaluated and tested by us or an independent testing facility designated by us. You must pay a charge not to exceed the reasonable cost of the evaluation and testing. We must, within 90 days after we receive your completed written request and completion of evaluation and testing of the proposed supplier and/or any such product or item, notify you in writing of our approval or
disapproval of the proposed supplier and/or the item. If approved, you will be allowed to use the Non-Proprietary Item(s)
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys and its affiliates may receive payments or other compensation from suppliers based on the suppliers' dealings with Ben Jerrys, its franchisees, or other Ben Jerrys shops within the system. Ben Jerrys has the discretion to use these amounts for any purpose they deem appropriate. Ben Jerrys may also negotiate supply contracts with suppliers to purchase products, equipment, supplies, and services at a lower price than franchisees can obtain individually.
Ben Jerrys also receives commissions from its Parent in connection with franchisee purchases of Ben & Jerry's Products through distributors. In 2024, this commission was 20% of the Parent's net receipts from franchisee purchases of Ben & Jerry's Products. During the fiscal year ending December 31, 2024, the Parent's revenue from sales of Ben & Jerry's Products to franchisees through independent distributors was approximately $23,043,315.
Other than these revenues and commissions from its Parent, neither Ben Jerrys nor its affiliated entities receive payments from suppliers based on franchisee purchases. This arrangement is common in franchising, where franchisors often negotiate with suppliers and receive compensation, which can help fund system-wide improvements or support the franchise network. Prospective franchisees should consider these arrangements and how they might affect product costs and overall profitability.