How much did Ben Jerrys owe to related parties in 2023?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
4,644 and $4,706, respectively.
The intercompany receivables and payables balances are settled on a periodic basis. All amounts due to and from the Parent are presented separately as a single net amount on the consolidated balance sheet as the Company has both the right and the intent to offset amounts due to and from
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the company's consolidated balance sheet indicates the amount due to related parties in 2023. Specifically, Ben Jerrys owed $7,282,000 to related parties as of December 31, 2023. This is presented as a single net amount on the consolidated balance sheet because Ben Jerrys has the right and intent to offset amounts due to and from Conopco, the related party.
For a prospective franchisee, this figure represents the financial obligations Ben Jerrys has with its parent companies and affiliates. It is important to note that Ben Jerrys is a wholly-owned subsidiary of Ben & Jerry's Homemade, Inc., which in turn is a subsidiary of Conopco, Inc., which itself is an indirect subsidiary of Unilever. These intercompany relationships result in various transactions and allocations of expenses, which are reflected in the "Due to related party" balance.
The FDD also clarifies that Homemade, and its parent, Conopco, Inc., provide various services to Ben Jerrys, including cash management, processing accounts payable and payroll, and paying for workers' compensation, insurance, and income taxes. Ben Jerrys reimburses these entities for these services. In 2023, these services included approximately $5,203,000 for personnel costs, $117,000 for rent and utility costs, and $178,000 for other services. Understanding these related-party transactions is crucial for assessing the financial health and operational dependencies of Ben Jerrys.
Prospective franchisees should be aware of how these related-party transactions could impact Ben Jerrys's financial performance and stability. While Conopco has committed to providing additional funding to Ben Jerrys if needed, it is essential to understand the terms and conditions of such funding and how it might affect the franchise system. Further due diligence, including consulting with a financial advisor, is recommended to fully understand the implications of these related-party transactions.