How are intercompany receivables and payables balances settled between Ben Jerrys and its parent company?
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' 2025 Franchise Disclosure Document, intercompany receivables and payables balances with its parent company, Homemade, Inc., and its related party, Conopco, Inc., are settled on a periodic basis. These balances are presented as a single net amount on Ben & Jerry's consolidated balance sheet. This netting occurs because Ben Jerrys has both the right and the intent to offset amounts due to and from these related entities.
As of December 31, 2024, the amount due from the Parent (Homemade, Inc.) to Ben & Jerry's Franchising, Inc. was $35,002, while as of December 31, 2023, the amount was $23,241. These amounts are presented as current assets on the balance sheet. Conversely, the amount due to the Related party (Conopco) from Ben & Jerry's Franchising, Inc. was $17,261 as of December 31, 2024, and $7,282 as of December 31, 2023.
This arrangement is significant for prospective franchisees as it reflects the financial взаимосвязи between Ben Jerrys and its parent company and related entities. Understanding these intercompany transactions and how they are settled provides insight into the overall financial structure and stability of the Ben Jerrys franchise system. The periodic settlement and netting of balances suggest an efficient cash management process between the entities.