To whom should Ben Jerrys OPERATOR make payments to the Fund?
Ben_Jerrys Franchise · 2025 FDDAnswer 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.
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;
12.2.4 BEN & JERRY'S, upon OPERATOR's reasonable written request, shall provide OPERATOR with an annual accounting of Fund receipts and disbursements; and
12.2.5 BEN & JERRY'S reserves the right, in its sole discretion, to discontinue the Fund upon written notice to OPERATOR.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, an OPERATOR must make separate payments to Ben & Jerry's for contributions to the Fund. Ben & Jerry's will direct how the payments should be made. These contributions are not refundable and will be used by Ben & Jerry's for marketing, advertising, public relations, promotional programs, and socially responsible activities. Ben & Jerry's will maintain separate bookkeeping accounts for the Fund.
Ben & Jerry's has the right to direct all marketing programs and is not obligated to ensure that expenditures from the Fund are equivalent or proportionate to an OPERATOR's contribution. 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.
Prospective franchisees should note that Ben & Jerry's has the right to discontinue the Fund with written notice to the OPERATOR. Upon written request from the OPERATOR, Ben & Jerry's will provide an annual accounting of Fund receipts and disbursements. This arrangement is typical in franchising, where marketing funds are controlled by the franchisor to ensure brand consistency and leverage economies of scale.