How often does a Ben Jerrys franchisee pay the continuing royalty fee?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
4.2 Each month during the term of this Agreement, OPERATOR shall pay BEN & JERRY'S a continuing royalty fee in an amount that will not exceed five percent (5.0%) of the Gross Sales (as defined in Section 4.4 below) of the Scoop Shop during the prior month.
4.4 As used in this Agreement, "Gross Sales" means revenue from the sale of all Products and all other income, whether for cash or credit, of every kind and nature related to the Scoop Shop (including Off-Premises Activities, On-Demand Sales and Mobile Vending), including proceeds of any business interruption insurance policies, regardless of collection in the case of credit.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, a franchisee, referred to as the OPERATOR, is required to pay a continuing royalty fee each month during the term of the Franchise Agreement. This royalty fee will not exceed five percent (5.0%) of the Scoop Shop's Gross Sales during the prior month. Gross Sales include revenue from all Products and income related to the Scoop Shop, including Off-Premises Activities, On-Demand Sales, and Mobile Vending, as well as proceeds from business interruption insurance policies.
For a Test Shop operating under an addendum to the Franchise Agreement, the OPERATOR also pays a continuing royalty fee each month, not exceeding five percent (5.0%) of the Test Shop's Gross Sales from the previous month. The terms of the Franchise Agreement regarding royalty payments apply to the Test Shop as well. The franchisee can submit monthly royalty payments for the Test Shop together with royalty payments for the Scoop Shop.
It's important for prospective Ben Jerrys franchisees to understand that failure to make these payments on time can result in penalties. The FDD specifies that any payment not received by Ben Jerrys on or before the due date is considered overdue and will incur interest at a rate of one and one-half percent (1.5%) per month, or the maximum rate permitted by law, whichever is less. Additionally, Ben Jerrys reserves the right to collect overdue royalties and contributions by adding the amount to the franchisee's purchases of Products from Ben Jerrys and/or its affiliates and approved suppliers or distributors.