What kind of accounting does Ben Jerrys provide for the marketing fund?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
We will account separately for all sums paid to the Fund.
We will not use them for any of our expenses, except for reasonable costs and overhead, if any, that we incur in activities reasonably related to the direction and implementation of the Fund and marketing programs for franchisees and the System, which may include national advertising.
These costs may include costs of personnel for creating and implementing marketing, advertising, public relations, and promotional programs.
The Fund and any earnings on it will not otherwise benefit us. (Franchise Agreement § 12.2.3)
We will provide you with an annual unaudited accounting of Fund contributions and disbursements, upon reasonable request. (Franchise Agreement § 12.2.4) During our fiscal year ended December 31, 2024, the Fund used approximately 13% of the money on in-shop promotion materials/production, 76% on digital programs and support, 8% on administrative costs, and 3% on other advertising costs such as Fishbowl (an email marketing tool provided to franchisees).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 43–60)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys will account separately for all sums paid into the marketing fund. Ben Jerrys will not use these funds for their own expenses, except for reasonable costs and overhead related to directing and implementing the fund and marketing programs. These costs may include personnel costs for creating and implementing marketing, advertising, public relations, and promotional programs. The fund and any earnings on it will not otherwise benefit Ben Jerrys.
Upon request, Ben Jerrys will provide franchisees with an annual unaudited accounting of fund contributions and disbursements. During the fiscal year ended December 31, 2024, the fund used approximately 13% of the money on in-shop promotion materials/production, 76% on digital programs and support, 8% on administrative costs, and 3% on other advertising costs such as Fishbowl (an email marketing tool provided to franchisees).
This means that franchisees can request to see how the marketing funds are being used each year. While the accounting is unaudited, it does provide some transparency into the allocation of the funds. The FDD specifies the percentage breakdown of how the marketing fund was used in 2024, which gives prospective franchisees an idea of where their contributions are likely to be allocated.