factual

Can a Ben Jerrys operator contribute to the Fund by means other than a separate payment?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 12.2.3 OPERATOR shall contribute to the Fund by separate payment made payable (or as otherwise directed for payment) to 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, a franchisee, referred to as an 'OPERATOR,' is required to contribute to the Fund through a separate payment. Specifically, the FDD states that the OPERATOR must make a 'separate payment made payable (or as otherwise directed for payment) to BEN & JERRY'S.' This indicates that contributions to the Fund must be made via a direct payment to Ben & Jerry's, rather than through other means.

The purpose of the Fund is to cover the costs associated with marketing, advertising, public relations, and promotional programs, including socially responsible activities. These activities may include media marketing campaigns, direct mail advertising, marketing surveys, sponsorship of organizations and events, and the provision of promotional materials to Ben Jerrys shops. The funds are managed by Ben & Jerry's, who have the authority to direct all marketing programs and determine the allocation of funds.

The FDD also specifies that Ben & Jerry's will maintain separate bookkeeping accounts for the Fund and provide an annual accounting of receipts and disbursements to the OPERATOR upon request. The contributions to the Fund are not held in trust, and Ben & Jerry's does not have a fiduciary obligation to the OPERATOR regarding these contributions. The contributions are also non-refundable.

In addition to contributing to the Fund, Ben & Jerry's OPERATORS are also obligated to spend a percentage of gross sales on local advertising and promotion. The allocation between contributions to the Fund and local advertising expenditures can be designated by Ben & Jerry's in writing. The OPERATOR is encouraged to expend additional funds for marketing and promotion beyond the minimum requirement. Ben & Jerry's also reserves the right to collect past due contributions by adding the amount to the monies due for the OPERATOR's purchases of products from Ben & Jerry's and/or its affiliates and approved suppliers or distributors.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.