On what basis must a Ben Jerrys operator prepare profit and loss statements?

According to Ben Jerrys's 2025 Franchise Disclosure Document, operators must prepare their profit and loss statements on an accrual basis and in accordance with Generally Accepted Accounting Principles (GAAP). This means that revenue and expenses are recognized when they are earned or incurred, regardless of when cash changes hands. This provides a more accurate picture of the business's financial performance over a specific period.

Ben Jerrys requires operators to submit an annual profit and loss statement reflecting all Gross Sales during the preceding calendar year no later than sixty days after the end of each calendar year. This statement, along with other reports like royalty and marketing reports, helps Ben Jerrys monitor the financial health and performance of its franchise locations.

Adhering to GAAP ensures consistency and comparability across different Ben Jerrys locations, making it easier for the franchisor to evaluate performance and identify trends. It also provides a standardized framework for financial reporting, which can be beneficial for franchisees when seeking financing or managing their business operations. The operator is also required to maintain complete and accurate books, records, and accounts in accordance with GAAP for at least five years.