How are intercompany receivables and payables balances settled for Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
Conopco has committed to provide additional funding to the Company, in the event that BJF requires such funds.
Ben & Jerry's Franchising, Inc. facilitates the sale of bulk tubs of ice cream by Homemade, Inc. to the Company-owned and franchise scoop shops. The Company receives commission revenue of 20%, on the sales they facilitate. The amount of commission revenue earned in 2024 and 2023 was $4,449 and $4,644, respectively.
The intercompany receivables and payables balances are settled on a periodic basis. All amounts due to and from the Parent are presented separately as a single net amount on the consolidated balance sheet as the Company has both the right and the intent to offset amounts due to and from the Parent. Due from Parent to the Company was $35,002 a
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, intercompany receivables and payables balances are settled on a periodic basis. The document specifies that amounts due to and from the Parent company are presented as a single net amount on the consolidated balance sheet. This is because Ben Jerrys has both the right and the intent to offset amounts due to and from the Parent.
Specifically, as of December 31, 2024, the amount due from the Parent to Ben Jerrys was $35,002, and as of December 31, 2023, it was $23,241. These amounts are presented in current assets on the balance sheet. Similarly, amounts due to and from Conopco, the Related party, are presented as a single net amount on the consolidated balance sheet because Ben Jerrys has the right and intent to offset these amounts.
As of December 31, 2024, the amount due to the Related party from Ben Jerrys was $17,261, and as of December 31, 2023, it was $7,282. This offsetting practice simplifies the balance sheet presentation and reflects the intercompany financial relationships.
For a prospective Ben Jerrys franchisee, this indicates that the financial statements are consolidated in a way that nets out intercompany transactions, providing a clearer picture of the company's overall financial position with its parent and related entities. Understanding these intercompany transactions and their settlement is crucial for assessing the financial health and stability of Ben Jerrys.