Are contributions to the Ben Jerrys Fund held in trust?

According to Ben Jerrys's 2025 Franchise Disclosure Document, contributions to the marketing fund are not held in trust. Ben Jerrys retains control over the fund's administration and is not obligated to allocate expenditures in proportion to an individual operator's contributions. This means that while franchisees are required to contribute to the fund, Ben Jerrys has the discretion to decide how the money is spent, without necessarily providing direct or equal benefits to each franchisee.

This arrangement carries implications for prospective franchisees. Since contributions are not held in trust, franchisees have less assurance that their contributions will directly benefit their specific location or market. Ben Jerrys has the right to direct all marketing programs and determine the concepts, materials, and media used, as well as their placement and allocation. Franchisees are contributing to a collective fund that Ben Jerrys manages, and the benefits they receive will depend on the franchisor's strategic decisions.

It is important for potential Ben Jerrys franchisees to understand that contributions to the fund are not refundable. Once Ben Jerrys receives the contributions, they will be used in accordance with the terms outlined in the franchise agreement. Franchisees should carefully consider this aspect and evaluate whether they are comfortable with the level of control Ben Jerrys has over the marketing fund and the absence of a direct fiduciary obligation to individual operators.

While Ben Jerrys is not obligated to ensure that each franchisee benefits directly or pro rata from the fund's expenditures, the FDD states that Ben Jerrys will provide an annual accounting of fund receipts and disbursements upon a franchisee's reasonable written request. This provides a degree of transparency, allowing franchisees to see how the fund is being managed and where the money is being spent. However, it does not change the fact that Ben Jerrys has significant discretion over the fund's use and is not bound by a fiduciary duty to individual franchisees.