How did Ben Jerrys' 'Due to related party' liabilities change between 2022 and 2023?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net profit (loss) from operations | 1,161 | (258) |
| Adjustments to reconcile net profit (loss) to net | ||
| cash provided by operating activities: | ||
| Allowance for (recovery of) credit losses | 1 | (61) |
| Depreciation and amortization | 152 | 152 |
| Interest on financing lease | - | (1) |
| Amortization of right of use asset, operating | 77 | 77 |
| Amortization of right of use asset, financing | 36 | 37 |
| Deferred income taxes | 225 | (67) |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (54) | (47) |
| Inventories | (37) | 85 |
| Prepaid expenses and other assets | (127) | 54 |
| Due from parent, net | (4,826) | (3,112) |
| Deposits | 4 | - |
| Accounts payable | (136) | (145) |
| Accrued liabilities | (414) | 140 |
| Operating lease obligations | (76) | (73) |
| Current tax liabilities | 165 | - |
| Due to related party | 4,046 | 3,425 |
| Deferred revenue | (74) | (145) |
| Net cash provided by operating activities | 123 | 61 |
| Cash flows from investing activities: | ||
| Purchases of fixed assets | (8) | - |
| Net cash used in investing activities | (8) | - |
| Cash flows from financing activities: | ||
| Payments on financing lease obligations | (36) | (35) |
| Net cash used in financing activities | (36) | (35) |
| Increase in cash | 78 | 26 |
| Cash at beginning of year | 1,308 | 1,282 |
| Cash at end of year |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys' 2025 Franchise Disclosure Document, the "Due to related party" liabilities increased between 2022 and 2023. In 2022, the "Due to related party" liabilities were $3,236 (in thousands), while in 2023, they increased to $7,282 (in thousands). This represents an increase of $4,046 (in thousands) in the amount Ben & Jerry's owed to related parties from 2022 to 2023.
This liability represents amounts Ben & Jerry's owes to Conopco, Inc., its related party, for services Conopco provides. These services include cash management, processing accounts payable and payroll, and paying for worker's compensation, insurance, and income taxes. Ben & Jerry's reimburses Conopco for these services.
For a prospective franchisee, this indicates the financial relationship Ben & Jerry's has with its parent company and related entities. It's important to understand the nature of these related-party transactions and how they might affect the financial stability and operations of the franchise system. A significant increase in this liability could signal changes in how Ben & Jerry's manages its finances or the level of support it receives from its parent company.