How often must a Ben Jerrys franchisee make contributions for marketing and promotion?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3 OPERATOR shall make monthly contributions for marketing and promotion as specified in Section 12.1 based on the Gross Sales of the Scoop Shop.
The Advertising Obligation shall be in the form of the following, and in such proportions as may be designated by BEN & JERRY'S in writing from time to time: (i) contributions paid to the Fund, pursuant to Section 12.2 below, (ii) expenditures by OPERATOR on "local advertising and promotion" pursuant to Section 12.3, and/or (iii) contributions paid to any Cooperative, as may be established pursuant to Section 12.3.4 below.
As of the Effective Date and until written notice from BEN & JERRY'S, the allocation shall be as follows: two percent (2%) of Gross Sales shall be contributed by OPERATOR to the Fund, and two percent (2%) of Gross Sales shall be spent by OPERATOR on local advertising and promotion.
- 12.3.1 OPERATOR shall spend such amounts as BEN & JERRY'S may specify in accordance with Section 12.1 above and 12.4 below for the Grand Opening.
For any month in which OPERATOR is required to make expenditures on local advertising and promotion, OPERATOR shall submit to BEN & JERRY'S, in accordance with the procedures set forth in Section 4.5 above or as otherwise specified by BEN & JERRY'S, detailed reports describing the amount of money expended on advertising, marketing and promotion during the previous month (or other time period specified by BEN & JERRY'S).
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, franchisees are required to make monthly contributions for marketing and promotion. These contributions are specified in Section 12.1 of the franchise agreement and are based on the gross sales of the Scoop Shop.
The franchisee's advertising obligation includes contributions to the Ben & Jerry's marketing fund (the "Fund"), expenditures on local advertising and promotion, and contributions to any established Cooperative. As of the effective date of the agreement, the franchisee must contribute two percent of gross sales to the Fund and spend an additional two percent of gross sales on local advertising and promotion. However, Ben & Jerry's can change this allocation with written notice.
In addition to these ongoing obligations, Ben & Jerry's franchisees must also conduct a grand opening event within 90 days of commencing operations, with expenditures as Ben & Jerry's may specify. For any month in which the franchisee is required to make expenditures on local advertising and promotion, they must submit detailed reports to Ben & Jerry's, outlining the amount of money spent on advertising, marketing, and promotion during the previous month or other specified time period.