Can the Ben Jerrys Marketing Fund and its earnings benefit the franchisor?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
We have historically disseminated advertising in a variety of media, including print and radio.
We will use the art, graphic and marketing department of our Parent and other agencies to prepare marketing and advertising for the Fund.
We may also promote the brand and the System using radio and television.
If we do not use all of the fees in the Fund in the year in which they accrue, we will use these amounts in a subsequent year.
If, for any reason, expenditures from the Fund are in excess of amounts available, the overage amount may be covered initially by us and thereafter reimbursed to us out of the franchise marketing funds raised for the subsequent year.
We do not use any money from the Fund for advertising that is principally a solicitation for the sale of franchises.
We do not receive any payment for providing goods or services to the Fund.
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, the Fund and its earnings will not otherwise benefit Ben Jerrys, except for reasonable costs and overhead that Ben Jerrys incurs 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.
Company-owned Shops contribute to the Fund on the same bases as franchisees. Ben Jerrys may not provide materials produced by the Fund to franchisees who have not made their contributions to the Fund, or during a period in which they are not required to make a contribution. Ben Jerrys will account separately for all sums paid to the Fund and will provide franchisees with an annual unaudited accounting of Fund contributions and disbursements, upon reasonable request.
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). If expenditures from the Fund are in excess of amounts available, the overage amount may be covered initially by Ben Jerrys and thereafter reimbursed to Ben Jerrys out of the franchise marketing funds raised for the subsequent year. Ben Jerrys does not use any money from the Fund for advertising that is principally a solicitation for the sale of franchises and does not receive any payment for providing goods or services to the Fund.