What is the current royalty fee for a Ben Jerrys franchise, and on what gross sales is it based?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1/ | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | Varies, but will not exceed 5% of Gross Sales2/ Current: Royalty: 3% | 15th day of each month on the Gross Sales for the prior month 3/ | We may change royalty fee upon reasonable notice to you. |
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- "Gross Sales" means revenue from the sale of all Products and all other income, whether for cash or credit, of every kind and nature related to the Shop, Off-Premises Activities, On-Demand Sales and Mobile Vending, but excluding all sales taxes.
Currently, we do not require that royalty and advertising fund contributions be made by a certain method; franchisees pay royalty and advertising fund contributions in the form that is most convenient for them.
We may require that you pay your royalties and advertising fund contributions by cashier's check or EFT ("Electronic Fund Transfer").
Source: Item 6 — OTHER FEES (FDD pages 23–28)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the royalty fee is a percentage of gross sales, with a maximum of 5%. Currently, the royalty is 3% of gross sales. This royalty fee is due on the 15th day of each month, based on the gross sales from the prior month. Ben Jerrys may change the royalty fee with reasonable notice.
Gross sales are defined as revenue from all product sales and any other income related to the shop, including off-premises activities, on-demand sales, and mobile vending. However, gross sales exclude all sales taxes. This means franchisees pay royalties on nearly all revenue streams, but they do not pay royalties on the sales tax they collect.
Franchisees should be aware that Ben Jerrys has the right to modify the procedures for collecting fees. While currently franchisees can pay royalties in the form most convenient for them, Ben Jerrys may require royalties to be paid via cashier's check or electronic fund transfer (EFT).