Is Ben Jerrys allowed to designate itself or an affiliate as the exclusive supplier for equipment, supplies, services, or products?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
eting our standards and specifications. We may be an approved supplier of some of such items. We may disapprove of Products and suppliers based on our desire to consolidate System purchases through fewer suppliers.
We 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) for a test period of 6 months after which Ben & Jerry's will evaluate whether to approve the Non-Proprietary Item(s) for system-wide use, or decline the Non-Proprietary Item(s) for system-wide use.
We may revoke our approval of particular suppliers and/or Products, equipment, supplies, services, and other items when we determine that the supplier and/or Product or other item no longer meets our standards.
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 has the right to designate itself or an affiliate as the exclusive supplier for any equipment, supplies, services, or products. If Ben Jerrys designates a single supplier, the franchisee is required to purchase those items exclusively from that designated supplier.
This arrangement allows Ben Jerrys to potentially benefit financially from these supplier relationships. The FDD states that Ben Jerrys and/or its affiliates may receive payments or other compensation from suppliers based on these dealings with franchisees or other Ben Jerrys shops. Ben Jerrys is allowed to use these payments for any purpose they deem appropriate. Furthermore, Ben Jerrys and its affiliates can negotiate supply contracts that allow them to purchase items at a lower price than what is available to franchisees.
For a prospective franchisee, this means that a significant portion of their purchases, estimated at approximately 75% for establishing the shop and 80% for ongoing operations, must be made from approved suppliers or according to Ben Jerrys's specifications. While Ben Jerrys does not require franchisees to make purchases directly from them, the brand does receive commissions from its Parent company, determined as a percentage of the Parent's revenues from sales of Ben & Jerry's Products to franchisees through distributors. In 2024, this commission was 20% of the Parent's net receipts from franchisee purchases of Ben & Jerry's Products. Franchisees should be aware of these arrangements and factor them into their cost analysis.
It is also important to note that Ben Jerrys retains the right to revoke approval of particular suppliers, products, equipment, supplies, or services if they no longer meet the brand's standards. Franchisees must cease purchasing from disapproved suppliers and discontinue using disapproved items upon written notice. While Ben Jerrys provides specifications for Non-Proprietary Products, equipment, supplies, and services upon request, they are not obligated to share confidential standards and specifications with prospective suppliers.