What is the current royalty fee for a Ben Jerrys franchise, and what is the maximum royalty fee that Ben Jerrys can charge?
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. |
Source: Item 6 — OTHER FEES (FDD pages 23–28)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee based on a percentage of gross sales. The current royalty fee is 3% of gross sales, but Ben Jerrys has the right to increase this fee. The maximum royalty fee that Ben Jerrys can charge is 5% of gross sales.
Gross sales are defined as revenue from all product sales and other income related to the shop, including off-premises activities, on-demand sales, and mobile vending, but excluding sales taxes. This means franchisees pay royalties on nearly all revenue streams. The royalty fee is due on the 15th day of each month, covering the gross sales from the previous month.
Ben Jerrys retains the right to modify the royalty fee with reasonable notice. This clause provides Ben Jerrys with the flexibility to adjust fees based on market conditions or the needs of the franchise system. However, franchisees will be informed of any changes beforehand. Prospective franchisees should consider that the royalty fee could increase up to the maximum of 5% during the term of their franchise agreement.