What are the main revenue streams for Ben Jerrys Franchising?

According to Ben Jerrys's 2025 Franchise Disclosure Document, the company's main revenue streams are categorized into revenue from franchisees and other revenues. Revenue from franchisees includes franchise license fees, royalties, and advertising fees. Other revenues consist of net product sales from company-owned stores and commission revenue from the parent company.

Franchise license fees are typically recognized on a straight-line basis over the term of the franchise agreement, which is usually 10 years, starting from when the scoop shop opens. This means that the initial franchise fee is not recognized as revenue all at once but is spread out over the duration of the agreement. This approach aligns the revenue recognition with the ongoing rights and services provided to the franchisee.

Ben Jerrys also generates net product sales through its two company-owned scoop shops. These shops operate like independent franchises, selling ice cream and related products directly to customers. All sales from these locations are reported as Net Product Sales on the Consolidated Statement of Operations, with the company covering all the expenses for these locations. Additionally, Ben Jerrys earns commission revenue from its parent company based on the parent's gross manufacture and sales of ice cream products and ingredients specific to the franchise business. This commission is recognized when the parent company sells these products to Unilever's North America Supply Chain Company, which then distributes them.