What are the different ways Ben Jerrys can allocate the Advertising Obligations for a franchisee?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
oping this advertising program to meet our standards, although you will be responsible for all payments for the advertising you conduct. We may provide public relations templates that you may use and the Manual will include the Grand Opening Guidebook.
Additionally, recognizing the value of advertising, and the importance of the standardization of advertising programs to the furtherance of the goodwill and public image of the System, we reserve the right to require you to expend on advertising and promotion, or to participate in and contribute for the purpose of advertising and promotion, each year during the
term of the Franchise Agreement (the "Advertising Obligations"). We have the right to require you to spend money on Local Advertising and Promotion, contribute to the Fund, and/or contribute to a Cooperative. See Item 6 for a summary of the total amount we can require you to expend on advertising and promotion.
We will determine what proportion of the Advertising Obligations you must: (1) contribute to the Fund; (2) spend on local advertising and promotion; and (3) contribute to a Cooperative (if one is established for your region). No matter how we determine to split your Advertising Obligations, the total amount you must pay or spend will not exceed 4% of the Gross Sales of your Franchised Business.
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, Ben Jerrys retains the right to mandate how franchisees allocate their advertising obligations. These obligations are designed to promote the Ben & Jerry's brand and system. Ben Jerrys can direct franchisees to allocate these funds in one or more of the following ways.
First, Ben Jerrys may require franchisees to contribute a portion of their advertising obligations to the Marketing Fund, which Ben Jerrys manages. Second, Ben Jerrys can direct franchisees to spend a portion of their advertising obligations on local advertising and promotion efforts. Finally, Ben Jerrys can mandate contributions to a Cooperative, if one exists in the franchisee's region.
Regardless of how Ben Jerrys chooses to allocate a franchisee's advertising obligations across these options, the total amount a franchisee is required to spend or pay will not exceed 4% of the franchised business's gross sales. Item 6 of the FDD provides further details on the total advertising expenditure required. As of the date of the 2025 Disclosure Document, there are no franchisee advertising councils.