When is the royalty fee due to Ben Jerrys?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1/ | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | Varies, but will not exceed 5% of Gross Sales2/ Current: Royalty: 3% | 15th day of each month on the Gross Sales for the prior month 3/ | We may change royalty fee upon reasonable notice to you. |
If the 15th is on a Saturday, Sunday, or holiday, the contribution will be due on the next business day.
We may require that you pay your royalties and advertising fund contributions by cashier's check or EFT ("Electronic Fund Transfer").
Currently, we do not require that royalty and advertising fund contributions be made by a certain method; franchisees pay royalty and advertising fund contributions in the form that is most convenient for them.
During any time you are required to make contributions or expenditures, you must submit to us, by the 15th day of each month, a report describing the amount of money contributed or expended on advertising during the previous month.
Source: Item 6 — OTHER FEES (FDD pages 23–28)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the royalty fee is due on the 15th day of each month. This payment covers the Gross Sales from the previous month. Currently, the royalty is 3% of Gross Sales, although the FDD states that it can vary, but will not exceed 5%.
It's important to note that if the 15th of the month falls on a Saturday, Sunday, or holiday, the royalty payment is due on the next business day. Ben Jerrys may also require franchisees to pay royalties via cashier's check or Electronic Fund Transfer (EFT). However, the FDD indicates that currently, Ben Jerrys does not mandate a specific payment method, allowing franchisees to use the most convenient form of payment.
In addition to royalty fees, franchisees must also submit a monthly report by the 15th of each month detailing the amount of money spent on advertising during the previous month. This requirement ensures transparency and accountability in meeting advertising obligations. Prospective franchisees should be aware of these recurring deadlines and reporting requirements to maintain compliance with the Ben Jerrys franchise agreement.