How should a Ben Jerrys operator contribute to the Fund?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
During the existence of the Fund, OPERATOR shall contribute to the Fund in the manner specified in Section 4.5, such amounts as BEN & JERRY'S may specify in accordance with Section 12.1 above.
OPERATOR shall contribute to the Fund by separate payment made payable (or as otherwise directed for payment) to BEN & JERRY'S.
All sums paid by OPERATOR to the Fund shall be accounted for separately and shall not be used to defray any of the expenses of BEN & JERRY'S, except for such costs and overhead, if any, as BEN & JERRY'S may incur in activities related to the management, direction and implementation of the Fund and marketing programs for operators and the System, including costs of personnel for creating and implementing marketing, advertising, and promotional programs.
BEN & JERRY'S shall maintain separate bookkeeping accounts for the Fund;
BEN & JERRY'S, upon OPERATOR's reasonable written request, shall provide OPERATOR with an annual accounting of Fund receipts and disbursements; and
BEN & JERRY'S reserves the right, in its sole discretion, to discontinue the Fund upon written notice to OPERATOR.
- 4.5.1 Any payment, contribution, statement, or report not actually received by BEN & JERRY'S on or before such date shall be overdue. If any contribution or payment is overdue, OPERATOR shall pay BEN & JERRY'S immediately upon demand, in addition to the overdue amount, interest on such amount from the date it was due until paid, at the rate of one and one-half percent (1.5%) per month, or the maximum rate permitted by law, whichever is less. Entitlement to such interest shall be in addition to any other remedies BEN & JERRY'S may have. If any payment or contribution submitted by check is returned or dishonored, OPERATOR shall pay BEN & JERRY'S immediately upon demand, in addition to the amount due, an amount established by BEN & JERRY'S from time to time to compensate BEN & JERRY'S for any fees or charges that BEN & JERRY'S incurs due to such returned or dishonored check.
- 4.5.2 BEN & JERRY'S reserves the right to collect all or a portion of OPERATOR's past due royalties and contributions (including interest) by adding such amount to the monies due for OPERATOR's purchases of Products from BEN & JERRY'S and/or its affiliates and approved suppliers or distributors (as provided in Section 7.10.3, cash on delivery may be required for purchases of Ben & Jerry's Products). All monies collected by BEN & JERRY'S affiliates and suppliers for OPERATOR's past due contributions shall be remitted to BEN & JERRY'S on OPERATOR's account. OPERATOR shall not delay, withhold or set-off any payments or contributions due hereunder against any monetary or other claim it may have against 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, operators are required to contribute to the Fund as specified in Section 4.5 of the agreement, with the amounts determined by Ben Jerrys according to Section 12.1. Currently, the allocation is set at two percent (2%) of Gross Sales, though Ben Jerrys can change this with written notice. These contributions must be made via separate payment to Ben Jerrys, or as otherwise directed.
The Fund is used for various marketing, advertising, public relations, and promotional activities, including socially responsible activities. Ben Jerrys has the authority to direct all marketing programs and determine the use of materials and media. It's important to note that contributions to the Fund are not held in trust, and Ben Jerrys does not have a fiduciary obligation to operators regarding these contributions. Furthermore, contributions are non-refundable and will be used as per Section 12.2 of the agreement.
Ben Jerrys will maintain separate bookkeeping accounts for the Fund and provide an annual accounting of receipts and disbursements upon an operator's reasonable written request. Ben Jerrys also retains the right to discontinue the Fund with written notice to the operator. Operators must also comply with payment and reporting procedures specified in the Manual or in writing. Any overdue payments will incur interest at a rate of 1.5% per month, or the maximum rate permitted by law, and Ben Jerrys can collect past due amounts from payments for product purchases.