factual

Which items in the Ben Jerrys Disclosure Document provide more information about fees?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 5: INITIAL FEES]

Additionally, if either (a) during the term of your Development Agreement, and you are in compliance with the Development Schedule, or (b) within one year of the successful completion of your Development Schedule and expiration of your Development Agreement, you wish to develop and operate additional Shops, you may request our approval. If we approve your request during the term of your Development Agreement, we will amend the Development Agreement to reflect the additional Shops and changes to the Development Schedule. The initial franchise fee that you must pay for those additional Shop(s) will be determined by considering such additional Shops as the next Shops to be developed and operated under the Development Schedule (as extended to account for the additional Shop).

Except as otherwise described above, all fees are payable in lump sum.

Incentive Program

Manager-to-Franchisee Pathways Program

For Ben & Jerry's Scoop Shop managers that are pursuing franchise ownership, we offer a waiver of initial franchise fees (such waiver is intended for managers will own 100% of the franchise), up to a 2-year period of royalty waivers (a 2-year royalty waiver shall be applicable to managers that acquire at least 50% equity/ownership of a franchise in the aggregate; a 1-year royalty waiver shall be applicable to managers that acquire between 20-50% equity/ownership of a franchise in the aggregate ) and reimbursement for approved learning and development expenses (e.g., attending Ben & Jerry's Franchise Annual Meeting). Qualification for this program is evaluated on a case-by-case basis and managers must meet certain criteria to be considered for the program. As of the issuance date of this disclosure document, such criteria include (i) a minimum equity/ownership interest of 20% in the franchise; (ii) a minimum of 1-year experience as a Ben & Jerry's Scoop Shop manager; (iii) demonstrated System participation (e.g. attendance at Franchise Annual Meeting, participation in Systemwide calls, etc.); and (iv) a demonstrated commitment to and understanding of Ben & Jerry's three-part mission (see Item 1, above). This program may be modified without notice at any time and we may establish and/or eliminate any benefits as we deem in the best interests of the System.

[Item 22: CONTRACTS]

4. FEES

  • 4.1 In consideration of the franchise granted herein, OPERATOR has, upon execution of this Addendum, paid to BEN & JERRY'S an initial test fee of two thousand five hundred dollars ($2,500), receipt of which is hereby acknowledged, which is earned and non refundable in consideration of administrative and other expenses incurred by BEN & JERRY'S in entering into this Agreement. If, prior to or upon the Test Expiration, OPERATOR and BEN & JERRY'S enter into a new Franchise Agreement for the Test Shop as described in Section 3.3 above, BEN & JERRY'S shall credit the initial test fee paid by OPERATOR toward the initial franchise fee due under such Franchise Agreement.
  • 4.2 Each month during the term of this Addendum, OPERATOR shall pay BEN & JERRY'S a continuing royalty fee in an amount that will not exceed five percent (5.0%) of the Gross Sales (as defined in Section 4 of the Franchise Agreement) of the Test Shop during the prior month. All other terms of the Franchise Agreement regarding payment of royalties shall apply with respect to the Test Shop as well as the Scoop Shop.

4.3 OPERATOR shall maintain separate books and records for the operation of the Test Shop. OPERATOR may, however, submit its monthly royalty payments for the Test Shop together (e.g., in the form of one check for each month) with OPERATOR'S royalty payments for the Scoop Shop for that same month, in the manner provided in the Franchise Agreement. OPERATOR shall comply with all reporting requirements relating to required expenditures and contributions of the Test Shop as set forth in the Franchise Agreement, and such reports and materials shall provide the required information relating to the operations of the Test Shop in a manner that separates and distinguishes it from the information relating to the operation of the Scoop Shop.

  • 12.3.1 OPERATOR shall spend such amounts as BEN & JERRY'S may specify in accordance with Section 12.1 above and 12.4 below for the Grand Opening.

For any month in which OPERATOR is required to make expenditures on local advertising and promotion, OPERATOR shall submit to BEN & JERRY'S, in accordance with the procedures set forth in Section 4.5 above or as otherwise specified by BEN & JERRY'S, detailed reports describing the amount of money expended on advertising, marketing and promotion during the previous month (or other time period specified by BEN & JERRY'S).

Additionally, at the request of BEN & JERRY'S or as BEN & JERRY'S may specify in the Manual or otherwise in writing, OPERATOR shall submit bills, statements, invoices, or other documentation satisfactory to BEN & JERRY'S to evidence OPERATOR's advertising or marketing activities;

  • 12.3.2 As used in this Agreement, the term "local advertising and promotion" shall refer to advertising and promotion related directly to the Scoop Shop, and shall, unless otherwise specified, consist only of the direct costs of purchasing advertising materials (including camera-ready advertising and point of sale materials), media (space or time), promotion, direct out-of-pocket expenses related to costs of advertising and sales promotion (including advertising agency fees and expenses, cash and "in-kind" promotional payments to landlords, postage, shipping, telephone, and photocopying), and such other activities and expenses as BEN & JERRY'S may specify.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 41–43)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, Item 5 and Item 22 contain information regarding fees. Item 5 discusses initial fees, including those related to developing additional shops and the Manager-to-Franchisee Pathways Program, which may offer waivers of initial franchise fees and royalty waivers under certain conditions. Item 22 outlines fees associated with addenda to franchise agreements, such as initial test fees and continuing royalty fees for test shops.

Specifically, Item 5 details the initial franchise fee structure for additional shops developed under a Development Agreement and mentions an Incentive Program called the Manager-to-Franchisee Pathways Program. This program offers potential waivers of initial franchise fees and royalty waivers for eligible Ben Jerrys Scoop Shop managers pursuing franchise ownership. The extent of the waiver depends on the manager's equity/ownership interest in the franchise, with a 2-year royalty waiver applicable for at least 50% ownership and a 1-year waiver for 20-50% ownership.

Item 22 provides information on fees related to test shops, including an initial test fee of $2,500, which is non-refundable. It also mentions a continuing royalty fee for test shops, which will not exceed 5% of the Gross Sales. This item also discusses requirements for local advertising and promotion, including potential expenditures and reporting requirements as specified by Ben Jerrys. These fees and requirements are essential for prospective franchisees to understand the financial obligations and operational expectations associated with opening and running a Ben Jerrys franchise.

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.