What discretion does Ben Jerrys have over the marketing programs funded by the Fund?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
We will direct all marketing programs, with sole discretion over the concepts, materials, and media used in the programs and their placement. The Fund is intended to maximize general public recognition, acceptance, and use of the System; and we are not obligated, in administering the Fund, to make expenditures for you that are equivalent or proportionate to your contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures by the Fund. We may use the Fund for national marketing programs and we are not obligated to spend any amount on advertising in the area where you are located. (Franchise Agreement § 12.2.1)
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- We will use the Fund, all contributions to it, and any earnings on it, exclusively for maintaining, administering, directing, conducting, and preparing marketing, advertising, public relations, and/or promotional programs and materials, and any other activities including socially responsible activities consistent with our Mission, which may include the costs of preparing and conducting media marketing campaigns (including Social Media) and developing, promoting and marketing the names of ice cream flavors to make political and other social statements; direct mail advertising; special events; marketing surveys and other public relations activities; employing advertising and/or public relations agencies to assist with them; purchasing promotional items; conducting and administering in-store promotions and customer sampling promotions; and providing promotional and other marketing materials and services to the Shops operating under the System. (Franchise Agreement § 12.2.2))
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 has extensive control over the marketing programs funded by the marketing fund (the "Fund"). Ben Jerrys directs all marketing programs and has sole discretion over the concepts, materials, and media used, as well as their placement. The aim of the Fund is to maximize public recognition and acceptance of the Ben Jerrys system.
Ben Jerrys is not obligated to make expenditures for individual franchisees that are equivalent to their contribution or to ensure that any specific franchisee benefits directly or proportionally from the Fund's expenditures. Ben Jerrys can use the Fund for national marketing programs without needing to spend any amount on advertising in the area where a franchisee is located. This means that while franchisees contribute to the Fund, they may not see direct benefits in their specific location.
The Fund is used exclusively for marketing, advertising, public relations, and promotional programs. This includes activities like media marketing campaigns, developing and promoting ice cream flavors to make political and social statements, direct mail advertising, special events, marketing surveys, and providing promotional materials to Ben Jerrys shops. Ben Jerrys can also employ advertising agencies and purchase promotional items using the Fund. While franchisees contribute to the Fund, Ben Jerrys has the authority to decide how the money is spent, with the goal of benefiting the Ben Jerrys brand as a whole.
Ben Jerrys retains significant control over the marketing fund, which is a common practice in franchising. While franchisees contribute to the fund, they do not have direct control over how the money is spent. However, Ben Jerrys will provide an annual accounting of receipts and disbursements of the Fund upon request.