When is the payment due for the online ordering system hardware for a Ben Jerrys franchise?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Preliminary Agreement Deposit1/ | $5,000 - $10,000, to be credited towards initial franchise fees | Lump Sum | Upon Signing | Us |
| Initial Franchise Fee2/ | $8,000 (for a Satellite Addendum); $19,750 to $39,500) for a Franchise Agreement) | Lump Sum | Upon Signing | Us |
| Plans, Development & Permits3/ | $3,500 to $12,000 | As Arranged | As Incurred | Design Firm, City and State Licensing Authority |
| Leasehold Improvements & Construction4/ | $85,000 to $230,000 | As Arranged | As Arranged | Contractor |
| Furniture, Fixtures, Equipment, Casework, and Smallwares5/ | $65,000 to $135,000 | As Arranged | As Incurred | Vendors |
| Signage6/ | $5,000 to $17,500 | As Arranged | As Incurred | Vendors |
| Professional Fees7/ | $3,000 to | As | As Arranged | Attorney, |
| $6,000 | Arranged | Accountant, etc. | ||
| POS8/ | $1,800 to $2,300 | As Arranged | Prior to Installati |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–37)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, payment for the online ordering system hardware, which ranges from $1,000 to $1,500, is due prior to installation. The payment method is arranged between the franchisee and the supplier or Ben Jerrys, acting as a payment agent.
This means a prospective Ben Jerrys franchisee needs to budget between $1,000 and $1,500 for the online ordering system hardware. This hardware supports online orders for items like cakes, catering, and on-demand delivery. The franchisee will need to have the funds available and make arrangements for payment with either the suppliers or Ben Jerrys before the hardware can be installed and the online ordering system can become operational.
It is common practice in franchising for equipment costs to be incurred prior to installation, as this ensures the supplier is paid before the franchisee begins using the equipment to generate revenue. The franchisee should confirm the exact payment schedule and acceptable payment methods with the supplier or Ben Jerrys to avoid any delays in the installation process.