What methods of payment does Ben Jerrys currently require for royalty and advertising fund contributions?

According to Ben Jerrys's 2025 Franchise Disclosure Document, currently, Ben Jerrys does not mandate a specific payment method for royalty and advertising fund contributions. Franchisees are allowed to use the payment method that is most convenient for them. However, Ben Jerrys retains the right to require franchisees to pay royalties and advertising fund contributions via cashier's check or EFT (Electronic Fund Transfer) in the future.

The royalty fee is a percentage of gross sales, which will not exceed 5%. Currently, the royalty is 3% of gross sales. Advertising obligations also vary but will not exceed 4% of gross sales. The current allocation is 2% for local advertising and promotion and 2% for fund contributions. These payments are due on the 15th day of each month for the prior month's gross sales. If the 15th falls on a Saturday, Sunday, or holiday, the payment is due on the next business day.

Ben Jerrys also reserves the right to collect past-due advertising contributions, including interest, by adding the amount to the franchisee's purchases of Ben & Jerry's products from Ben Jerrys, its affiliates, or its suppliers. If this method is used, all monies collected by Ben Jerrys's affiliates and suppliers for past-due amounts will be remitted to Ben Jerrys on the franchisee's account.

Prospective franchisees should note that while there is flexibility in payment methods currently, Ben Jerrys can change this policy and require specific payment methods like cashier's checks or EFT in the future. Franchisees should stay informed about any changes to payment procedures to avoid potential issues or penalties.