For a Ben Jerrys Catering Entity, what advertising obligations must be paid under the Franchise Agreement?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 12 of the Franchise Agreement shall be amended by the addition of the following Section 12.10:
- 12.10 The Catering Entity shall pay Advertising Obligations under the Franchise Agreement as described in Sections 12.1 and 12.3 of this Agreement.
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- Section 12.8 of the Franchise Agreement shall be amended by the addition of the following Section 12.8.5:
- 12.8.5 The Catering Entity shall not establish [or continue to maintain] a separate Website or register any domain name that displays or uses the Proprietary Marks or any marks confusingly similar thereto, or that refers to this Agreement, the Products, BEN & JERRY'S or the System. If the Catering Entity registers any domain name in violation of this subsection, in addition to all other rights and remedies of BEN & JERRY'S under this Agreement, BEN & JERRY'S shall have the right, but not the obligation, to require the Catering Entity to transfer any such registration(s) to BEN & JERRY'S or its designee, at the Catering Entity's expense.
Source: Item 23 — RECEIPTS (FDD pages 134–358)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, if a franchisee operates a Catering Entity, they are obligated to pay advertising fees as outlined in Sections 12.1 and 12.3 of the Franchise Agreement. Additionally, the Catering Entity is restricted from creating or maintaining its own website or registering domain names that use Ben Jerrys's proprietary marks or anything confusingly similar. If a Catering Entity violates this rule by registering a prohibited domain name, Ben Jerrys has the right to demand that the Catering Entity transfer the domain registration to Ben Jerrys at the Catering Entity's expense. This ensures that all advertising and online presence remains consistent with the Ben Jerrys brand standards.
This means that prospective Ben Jerrys franchisees need to factor in advertising costs as part of their financial planning if they intend to operate a Catering Entity. They should carefully review Sections 12.1 and 12.3 of the Franchise Agreement to understand the specific amounts and terms of these advertising obligations. Furthermore, franchisees must be aware of the restrictions on creating independent websites or domain names to avoid potential conflicts and expenses related to transferring domain registrations to Ben Jerrys.
It is common practice in franchising for franchisors to control advertising and marketing to maintain brand consistency and recognition. Ben Jerrys's approach aligns with this practice by requiring franchisees to contribute to advertising efforts and restricting independent online activities that could dilute the brand. Franchisees benefit from the established brand and marketing strategies, but they also need to comply with the franchisor's guidelines and contribute financially to these efforts.