What was the net profit (loss) from operations for Ben Jerrys Franchising, Inc. in 2022?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| BEN & JERRY'S FRANCHISING, INC. AND SUBSIDIARY | ||
|---|---|---|
| Consolidated Statements of Operations | ||
| (In Thousands) | ||
| 2023 | 2022 | |
| Net product sales | $ 5,770 | $ 4,338 |
| Other revenues | ||
| Commission revenue | 4,644 | 4,706 |
| Franchise fee revenue | 33 | 24 |
| Royalty fee revenue | 2,603 | 1,594 |
| Franchise advertising contribution | 2,057 | 2,019 |
| Total revenues | 15,107 | 12,681 |
| Cost of sales | 1,748 | 1,448 |
| Gross profit | 13,359 | 11,233 |
| Selling, general and administrative expenses | 11,799 | 11,547 |
| Profit (loss) from operations | 1,560 | (314) |
| Other income (expense) | ||
| Interest expense from related party | (9) | (11) |
| Profit (loss) before income taxes | 1,551 | (325) |
| Income tax (expense) benefit | (390) | 67 |
| Net profit (loss) | $ 1,161 | $ (258) |
| See accompanying notes to consolidated financial statements |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the profit (loss) from operations in 2022 was a loss of $(314) thousand. This means that Ben Jerrys Franchising, Inc. spent $314,000 more than it earned from its core business activities during that year. This figure is calculated before considering other income, expenses like interest, and income taxes.
For a prospective franchisee, this operational loss indicates potential financial instability or inefficiency in Ben Jerrys's franchising operations. It's crucial to understand the reasons behind this loss. Was it due to increased operating expenses, decreased revenues, or a combination of both? Understanding the reasons for the loss can help a franchisee assess the financial health and stability of the Ben Jerrys franchise system.
It is important to note that this figure represents the performance of Ben Jerrys Franchising, Inc. itself, and not the performance of individual franchise locations. While the franchisor's financial performance can impact franchisees, it is not necessarily indicative of the profitability of individual Ben Jerrys stores. A prospective franchisee should investigate the financial performance of existing franchisees to get a better sense of their potential earnings.
Prospective franchisees should also inquire about the franchisor's plans to improve profitability and operational efficiency. Understanding the franchisor's strategies for addressing the operational loss can provide valuable insight into the future prospects of the Ben Jerrys franchise system. Additionally, it would be prudent to consult with a financial advisor to fully assess the risks and opportunities associated with investing in a Ben Jerrys franchise.