What is Ben Jerrys' role in the organization and governance of a Cooperative?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
as BEN & JERRY'S may specify. BEN & JERRY'S may provide to OPERATOR, in the Manual or otherwise in writing information specifying the types of advertising and promotional activities and costs which shall not qualify as "local advertising and promotion," including the value of advertising coupons, and the costs of products provided for free or at a reduced charge for charities or other donations; and
- 12.3.3 OPERATOR is required to participate in all marketing campaigns as designated by BEN & JERRY'S, unless it requests in writing to opt out, and an authorization is granted in writing by BEN & JERRY'S.
- 12.3.4 BEN & JERRY'S shall have the right to designate any geographical area for purposes of establishing a market advertising fund ("Cooperative"). If a Cooperative is established for the geographic area in which the Scoop Shop is located, OPERATOR shall become a member of such Cooperative within thirty (30) days after the date on which the Cooperative commences operation. OPERATOR shall not be required to be a member of more than one (1) Cooperative, except to the extent that OPERATOR owns multiple Scoop Shops located in different geographic markets. Each Cooperative shall be organized and governed in a form and manner prescribed or approved by BEN & JERRY'S in writing.
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 a significant role in the establishment, organization, and governance of market advertising cooperatives. Ben Jerrys retains the right to designate any geographical area for the establishment of a Cooperative. If a Cooperative is established for the area in which a Ben Jerrys Scoop Shop is located, the franchisee (referred to as OPERATOR) is required to become a member within 30 days of the Cooperative's commencement.
Ben Jerrys also prescribes or approves the form and manner in which each Cooperative is organized and governed, ensuring that these entities align with Ben Jerrys's overall brand and marketing strategies. While franchisees are obligated to join a Cooperative if one exists in their area, they are generally not required to be members of more than one Cooperative, unless they own multiple Scoop Shops in different geographic markets.
Any disputes arising within the Cooperative, whether between the franchisee, other franchisees, or the Cooperative itself, are to be resolved according to the rules and procedures outlined in the Cooperative's governing documents. Furthermore, Ben Jerrys determines when the franchisee submits the required amount under the agreement, along with any other statements or reports, either directly or with Ben Jerrys's prior written approval. This level of oversight allows Ben Jerrys to maintain consistency and control over marketing efforts and dispute resolution within the Cooperative framework.