Besides revenues and commissions from its Parent, does Ben Jerrys or its affiliated entities receive payment from suppliers based on purchases by franchisees?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
Other than the revenues and commissions from our Parent described above, neither we nor our affiliated entities receive payment from suppliers based on purchases by franchisees. We do not have purchasing or distribution cooperatives.
As noted above, during our last fiscal year, we did not sell or lease any products or services to our franchisees. We receive commissions from our Parent in connection with purchases by franchisees of Ben & Jerry's Products through distributors. The commission is determined as a percentage of our Parent's revenues earned on account of sales of Ben & Jerry's Products to our franchisees. The commission paid to us for 2024 was 20% of our Parent's net receipts from franchisee purchases of Ben & Jerry's Products.
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 estimate that your total purchases and leases that you must obtain from approved suppliers or distributors, or in accordance with our specifications will represent approximately 75% of your total purchases or leases in establishing your Shop, and approximately 80% of your total purchases or leases in the continuing operation of your Shop.
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, neither Ben Jerrys nor its affiliated entities receive payments from suppliers based on franchisee purchases, with the exception of revenues and commissions from its Parent company. However, Ben Jerrys does receive commissions from its Parent in connection with franchisee purchases of Ben & Jerry's Products through distributors. The commission paid to Ben Jerrys for 2024 was 20% of the Parent's net receipts from franchisee purchases of Ben & Jerry's Products.
Ben Jerrys may designate a single supplier, which could be Ben Jerrys itself or one of its affiliates, for any products, equipment, supplies, or services. In such cases, franchisees must purchase these items exclusively from the designated supplier. Ben Jerrys and/or its affiliates may receive payments or other compensation from suppliers due to these dealings with franchisees or other Ben & Jerry's shops. These amounts received from suppliers can be used for any purpose Ben Jerrys deems appropriate.
Prospective franchisees should be aware that Ben Jerrys estimates approximately 75% of the total purchases and leases in establishing a shop and approximately 80% of the total purchases or leases in the continuing operation of the shop must be obtained from approved suppliers or distributors, or in accordance with their specifications. This requirement ensures quality control and consistency across the Ben Jerrys system, but it also limits the franchisee's ability to negotiate prices or choose suppliers independently.