What is the purpose of the Ben Jerrys marketing fund?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
do not receive written notice of disapproval from us within 10 business days of the date of receipt by us of the samples or materials, we will be deemed to have approved them for your use (see Item 8 above). (Franchise Agreement § 12.7).
Marketing Fund
We have the right to maintain and administer one or more marketing funds to promote our brand, the Ben & Jerry's Shops (including our existing Ben & Jerry's Shops), the Proprietary Marks, and the Products. Currently, we maintain and administer a fund for franchisee promotions for Shops, and to market the Ben & Jerry's brand (together the "Fund"). Contributions will be made to the Fund by Shops. We will administer the Fund as follows:
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- We will direct all marketing programs, with sole discretion over the concepts, materials, and media used in the programs and their placement. The Fund is intended to maximize general public recognition, acceptance, and use of the System; and we are not obligated, in administering the Fund, to make expenditures for you that are equivalent or proportionate to your contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures by the Fund. We may use the Fund for national marketing programs and we are not obligated to spend any amount on advertising in the area where you are located. (Franchise Agreement § 12.2.1)
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- We will use the Fund, all contributions to it, and any earnings on it, exclusively for maintaining, administering, directing, conducting, and preparing marketing, advertising, public relations, and/or promotional programs and materials, and any other activities including socially responsible activities consistent with our Mission, which may include the costs of preparing and conducting media marketing campaigns (including Social Media) and developing, promoting and marketing the names of ice cream flavors to make political and other social statements; direct mail advertising; special events; marketing surveys and other public relations activities; employing advertising and/or public relations agencies to assist with them; purchasing promotional items; conducting and administering in-store promotions and customer sampling promotions; and providing promotional and other marketing materials and services to the Shops operating under the System. (Franchise Agreement § 12.2.2))
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- You must contribute to the Fund by making a payment separate from your royalty payment (currently, you pay such fee by check; however, in the future, you may be required to use another form of payment, such as Electronic Fund Transfer or Direct Debit, as we may direct). (See Item 6 for the amount of the contribution and manner of payment). Company-owned Shops contribute to the Fund on the same bases as franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 43–60)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the marketing fund exists to promote the Ben & Jerry's brand, Ben & Jerry's Shops, the Proprietary Marks, and the Products. The fund is used for franchisee promotions for Shops and to market the Ben & Jerry's brand. Ben & Jerry's has sole discretion over the marketing programs, concepts, materials, and media used.
The fund's resources are dedicated to marketing, advertising, public relations, and promotional programs. These activities may include media marketing campaigns (including social media), developing and promoting ice cream flavor names to make political and social statements, direct mail advertising, special events, marketing surveys, public relations, employing agencies, purchasing promotional items, and conducting in-store promotions and customer sampling.
Ben & Jerry's aims to maximize public recognition and acceptance of its system through the fund. The company is not obligated to make expenditures equivalent or proportionate to a franchisee's contribution or ensure direct benefits to any particular franchisee. The fund may be used for national marketing programs without any obligation to spend amounts in the franchisee's specific area.
During the fiscal year ended December 31, 2024, the fund allocated approximately 13% of its money to in-shop promotion materials/production, 76% to digital programs and support, 8% to administrative costs, and 3% to other advertising costs, such as Fishbowl. Ben & Jerry's will provide an annual unaudited accounting of Fund contributions and disbursements upon reasonable request.