Is Ben Jerrys required to provide an accounting of the Fund's receipts and disbursements?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
We will account separately for all sums paid to the Fund.
We will not use them for any of our expenses, except for reasonable costs and overhead, if any, that we incur in activities reasonably related to the direction and implementation of the Fund and marketing programs for franchisees and the System, which may include national advertising.
These costs may include costs of personnel for creating and implementing marketing, advertising, public relations, and promotional programs.
The Fund and any earnings on it will not otherwise benefit us. (Franchise Agreement § 12.2.3)
We will provide you with an annual unaudited accounting of Fund contributions and disbursements, upon reasonable request. (Franchise Agreement § 12.2.4) During our 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).
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, Ben Jerrys maintains a marketing fund to promote the brand. Ben Jerrys will account separately for all sums paid into the fund and will not use these funds for their expenses, except for reasonable costs related to the direction, implementation, and marketing programs for franchisees. The fund and any earnings on it will not otherwise benefit Ben Jerrys.
Ben Jerrys will provide franchisees with an annual unaudited accounting of Fund contributions and disbursements, upon reasonable request. 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).
This means that while Ben Jerrys has discretion over how the marketing funds are spent, they are obligated to provide an accounting of how the money is used if a franchisee requests it. The accounting is unaudited, so it has not been reviewed by an independent accounting firm.