Who has the right to direct all marketing programs for Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2.1 BEN & JERRY'S shall have the right to direct all marketing programs, and to determine the concepts, materials, and media used in such programs and the placement and allocation thereof.
BEN & JERRY'S is not obligated, in administering the Fund, to make expenditures for OPERATOR which are equivalent or proportionate to OPERATOR's contribution, or to ensure that any particular OPERATOR benefits directly or pro rata from expenditures by the Fund.
Contributions to the Fund are not held by BEN & JERRY'S in trust and BEN & JERRY'S does not have any fiduciary obligation to OPERATOR with respect to contributions to the Fund.
Contributions to the Fund are not refundable to OPERATOR and, once received by BEN & JERRY'S, will be used in accordance with this Section 12.2;
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys has the right to direct all marketing programs for the system. Specifically, Ben Jerrys determines the concepts, materials, and media used in these programs, including their placement and allocation. This control is exercised through a marketing fund established by Ben Jerrys.
Ben Jerrys is not obligated to ensure that marketing expenditures from the fund benefit each franchisee in proportion to their contribution, nor do they have a fiduciary obligation to the franchisee regarding the fund. Contributions to the fund are non-refundable and are used at Ben Jerrys's discretion.
This arrangement means that while franchisees contribute a percentage of their gross sales to the marketing fund, Ben Jerrys ultimately decides how those funds are spent. Franchisees are also required to spend a separate percentage of gross sales on local advertising and promotion, giving them some control over marketing efforts specific to their location, although Ben Jerrys can specify what qualifies as local advertising. Franchisees must participate in marketing campaigns designated by Ben Jerrys unless they request to opt out and receive written authorization from Ben Jerrys.