What is a 'Cooperative' in the context of Ben Jerrys franchising?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.3.4 BEN & JERRY'S shall have the right to designate any geographical area for purposes of establishing a market advertising fund ("Cooperative").
If a Cooperative is established for the geographic area in which the Scoop Shop is located, OPERATOR shall become a member of such Cooperative within thirty (30) days after the date on which the Cooperative commences operation.
OPERATOR shall not be required to be a member of more than one (1) Cooperative, except to the extent that OPERATOR owns multiple Scoop Shops located in different geographic markets.
Each Cooperative shall be organized and governed in a form and manner prescribed or approved by BEN & JERRY'S in writing.
Any disputes arising among or between OPERATOR, other franchisees in the Cooperative, and/or the Cooperative, shall be resolved in accordance with the rules and procedures set forth in the Cooperative's governing documents.
OPERATOR's contributions to a Cooperative shall be credited towards satisfaction of the obligation for expenditures for local advertising and promotional activities as BEN & JERRY'S may require pursuant to Section 12.1 above, but shall not be credited towards required contributions to the Fund.
OPERATOR shall submit to the Cooperative the amount required of OPERATOR under this Agreement at such times as determined by BEN & JERRY'S, together with such other statements or reports as may be required by BEN & JERRY'S, or by the Cooperative with BEN & JERRY'S prior written approval.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a Cooperative refers to a market advertising fund established by Ben Jerrys for a specific geographical area. If Ben Jerrys establishes a Cooperative in the area where a franchisee's Scoop Shop is located, the franchisee is required to become a member within 30 days of the Cooperative's commencement.
A Ben Jerrys franchisee is generally only required to be a member of one Cooperative unless they own multiple Scoop Shops in different geographic markets. The Cooperative's organization and governance are dictated or approved by Ben Jerrys in writing. Any disputes among the franchisee, other franchisees within the Cooperative, or the Cooperative itself are to be resolved according to the Cooperative's governing documents.
The franchisee's contributions to the Cooperative are credited toward their local advertising and promotional expenditure obligations, as required by Ben Jerrys. However, these contributions do not count toward the franchisee's required contributions to the advertising fund. The franchisee must submit the required amount to the Cooperative at times determined by Ben Jerrys, along with any statements or reports required by Ben Jerrys or the Cooperative, provided Ben Jerrys has given prior written approval.