factual

Does Ben Jerrys contribute to the Marketing Fund on the same basis as franchisees?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

Company-owned Shops contribute to the Fund on the same bases as franchisees.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 43–60)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, company-owned shops contribute to the Marketing Fund on the same basis as franchisees. This means that Ben Jerrys itself, when operating its own stores, pays into the fund using the same formula or percentage of revenue as its franchisees do.

This arrangement is generally seen as a positive for franchisees because it aligns the franchisor's interests with those of the franchisees. When Ben Jerrys contributes to the fund on the same basis, it demonstrates a commitment to the collective marketing efforts and the overall success of the brand. It also ensures that the franchisor is invested in the performance of the marketing initiatives, as their own contributions are directly affected.

Prospective franchisees should still inquire about the specific details of the contribution formula and how the funds are allocated. Understanding the breakdown of expenses, such as the percentages spent on in-shop promotion materials, digital programs, administrative costs, and other advertising costs, can provide further insight into the fund's management and effectiveness. For example, the FDD states that during the fiscal year ended December 31, 2024, the Fund used approximately 13% of the money on in-shop promotion materials/production, 76% on digital programs and support, 8% on administrative costs, and 3% on other advertising costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.