What is the purpose of the Marketing Fund for Ben Jerrys franchises?
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).
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 is used to promote the Ben & Jerry's brand, Ben & Jerry's Shops, Proprietary Marks, and Products. The fund is maintained and administered for franchisee promotions and to market the Ben & Jerry's brand.
The fund is used exclusively for marketing, advertising, public relations, and promotional programs. These activities may include media marketing campaigns, developing and marketing ice cream flavor names to make political and social statements, direct mail advertising, special events, marketing surveys, and in-store promotions. The fund can also cover the costs of promotional items and agencies that assist with marketing efforts.
Ben & Jerry's has sole discretion over the marketing programs, including the concepts, materials, and media used. While the fund aims to maximize public recognition of the Ben & Jerry's system, there is no obligation to ensure that expenditures benefit each franchisee proportionally to their contribution, or at all. Ben & Jerry's may use the fund for national marketing programs without spending any amount in the franchisee's specific area. During the fiscal year ended December 31, 2024, the Fund used approximately 13% of the money on in-shop promotion materials/production, 76% on digital programs and support, 8% on administrative costs, and 3% on other advertising costs such as Fishbowl (an email marketing tool provided to franchisees).