factual

Where can a Ben Jerrys franchisee find a description of restrictions on some purchases?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

Ben & Jerry's Products, Proprietary Software, Trade Dress and Shop Design

You must purchase the Ben & Jerry's Products (as defined in Item 1) for your Shop that have been manufactured by our Parent as we determine in our sole discretion. At present, you must purchase the Ben & Jerry's Products directly from our designated independent distributors for your Shop. We have negotiated purchase arrangements with our suppliers, vendors and distributors for our franchisees. We do not issue specifications for, or entertain requests for approval of, Ben & Jerry's Products.

We have the right to, and in many instances we do, designate a single supplier for any equipment, supplies, services, or products and to require you to purchase exclusively from such approved supplier, which exclusive designated supplier may be us or an affiliate.

Also, you must purchase or lease, as we direct, proprietary graphics and trade dress (including videos, posters, banners, graphics, menu boards and strips, and specialty strips) for the Shop (the "Trade Dress") and proprietary non-ice cream food items, paper, plasticware, food, cleaning supplies, gift items, and equipment from suppliers that we have designated or approved in writing.

Additionally, as described in Item 11 under the heading "Construction and Layout of the Shop," we have the right to designate approved suppliers of design, build and architecture services

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for Shops being developed. During any time that we have designated either or both a "System Design Firm" or a "System Architect" for the area in which your Shop will be located, you may be required to hire such designated System Design Firm(s) and System Architect(s) in developing your Shop. As of the date of this Disclosure Document, "Livit" (www.livit.design) is our designated System Design Firm that provides design and build services for Shops being developed.

None of our officers owns an interest or direct stock ownership in any of the approved suppliers used by Ben & Jerry's franchisees.

Non-Proprietary Products and Other Purchases


[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

None of our officers owns an interest or direct stock ownership in any of the approved suppliers used by Ben & Jerry's franchisees.

Non-Proprietary Products and Other Purchases

All Non-Proprietary Products sold or offered for sale at the Shop must meet our thencurrent standards and specifications and be approved by us prior to any use. Also, in addition to the Trade Dress described above, you must purchase, install, and use all fixtures, furnishings, equipment, décor, supplies, computer system hardware, point-of-sale system hardware, software, signs and materials as we may reasonably require in the Manual or other written materials. You must purchase all Non-Proprietary Products and other items solely from manufacturers, distributors and suppliers who demonstrate to our continuing reasonable satisfaction the ability to meet our responsible sourcing standards, criteria and specifications, who possess adequate quality controls and capacity to supply your needs promptly and reliably, and who have been approved by us in the Manual or otherwise in writing. You may not purchase, offer or sell any Products, or purchase, install, or use on the premises of your Shop, any fixtures, furnishings, equipment, décor, supplies, computer system hardware, point-of-sale system hardware, software, signs and materials that we have not previously approved as meeting our standards and specifications. We may be an approved supplier of some of such items. We may disapprove of Products and suppliers based on our desire to consolidate System purchases through fewer suppliers.

We may designate a single supplier, which may be us or one of our affiliates, for any products, equipment, supplies, or services, in which event you must purchase such items exclusively from the designated supplier. We and/or our affiliates may receive payments or other compensation from suppliers on account of the suppliers' dealings with us, you, or other Ben & Jerry's Shops in the System. We may use any amounts that we receive from suppliers for any purpose that we deem appropriate. We and/or our affiliates may negotiate supply contracts with our suppliers under which we are able to purchase products (including Products), equipment, supplies, and services at a price lower than that at which our franchisees are able to purchase the same items.

Product and Supplier Approvals and Specifications


[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

We estimate that your total purchases and leases that you must obtain from approved suppliers or distributors, or in accordance with our specifications will represent approximately 75% of your total purchases or leases in establishing your Shop, and approximately 80% of your total purchases or leases in the continuing operation of your Shop.

We do not require our franchisees to make any purchases or leases from us, and therefore we did not have any revenue from required sales or leases of products or services to franchisees I 2024. Our current practice is that our Parent manufactures Ben & Jerry's Products and sells these products through distributors to various retail businesses, including our franchisees, as described above. Other than the distributors' purchases of Ben & Jerry's Products, our Parent does not receive payments (including rebates or commissions) in connection with suppliers' sales to our franchisees.

During our Parent's last fiscal year, ending December 31, 2024, our Parent's revenue from sales of required purchases of Ben & Jerry's Products (that is, our Parent's revenue from sales of Ben & Jerry's Products made through independent distributors to franchisees under the System) was approximately $23,043,315 based on our Parent's unaudited financial statements for its last fiscal year.

As noted above, during our last fiscal year, we did not sell or lease any products or services to our franchisees. We receive commissions from our Parent in connection with purchases by franchisees of Ben & Jerry's Products through distributors. The commission is determined as a percentage of our Parent's revenues earned on account of sales of Ben & Jerry's Products to our franchisees. The commission paid to us for 2024 was 20% of our Parent's net receipts from franchisee purchases of Ben & Jerry's Products.

Other than the revenues and commissions from our Parent described above, neither we nor our affiliated entities receive payment from suppliers based on purchases by franchisees. We do not have purchasing or distribution cooperatives.

We consider a variety of factors when determining whether to renew or grant additional franchises. Among the factors we consider is compliance with the requirements described above.


[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

We may revoke our approval of particular suppliers and/or Products, equipment, supplies, services, and other items when we determine that the supplier and/or Product or other item no longer meets our standards. When you receive written notice that we have revoked our approval of a supplier and/or Product or other item, you must stop purchasing from the disapproved supplier and/or stop selling or using the disapproved Product or other item. Our specifications for Non-Proprietary Products, equipment, supplies, services, and supplier approval are provided to you upon request; however, we have no obligation to make available to prospective suppliers, standards and specifications that we deem confidential. When approving suppliers, we consider ability to meet our then-current standards and specifications, quality controls and capacity to supply franchisees' needs promptly and reliably, and the possibilities for the System to take advantage of marketplace efficiencies. When approving Non-Proprietary Products, equipment, supplies, services, and other items we consider their conformity with our specifications, compatibility with our Ben & Jerry's Products, consistency with the desired image of our System, and availability to the System. We retain the sole control over the Products authorized for sale in our System and may deny our approval of a Product, equipment, supplies, services, or other item for any reason.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 67–68)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, Item 8 details restrictions on sources of products and services. This item specifies that franchisees must purchase Ben & Jerry's Products, proprietary graphics, trade dress, and certain other items from designated or approved suppliers.

Ben Jerrys retains the right to designate a single supplier for equipment, supplies, services, or products, potentially including themselves or an affiliate, and franchisees must purchase exclusively from that supplier. These designated suppliers must demonstrate the ability to meet Ben Jerrys's responsible sourcing standards and quality controls. Ben Jerrys may also disapprove products and suppliers to consolidate system purchases through fewer suppliers.

The FDD states that approximately 75% of initial shop setup purchases and leases, and 80% of ongoing operational purchases and leases, must be obtained from approved suppliers or according to Ben Jerrys's specifications. Ben Jerrys can revoke approval of suppliers or products if they no longer meet standards, and franchisees must cease purchasing or using those items upon written notice. Specifications for non-proprietary products and supplier approvals are provided upon request, though confidential standards may not be disclosed to prospective suppliers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.