When is the royalty fee due for a Ben Jerrys franchise?
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. |
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.
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.
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- "Gross Sales" means revenue from the sale of all Products and all other income, whether for cash or credit, of every kind and nature related to the Shop, Off-Premises Activities, On-Demand Sales and Mobile Vending, but excluding all sales taxes.
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, based on the Gross Sales from the prior month. The FDD specifies that if the 15th falls on a Saturday, Sunday, or holiday, the royalty payment is due on the next business day. Currently, Ben Jerrys allows franchisees to pay royalties using the method most convenient for them, but the company retains the right to require payments via cashier's check or Electronic Fund Transfer (EFT).
The royalty fee for a Ben Jerrys franchise varies but will not exceed 5% of Gross Sales. Currently, the royalty is 3%. Gross Sales includes revenue from all product sales and income related to the shop, off-premises activities, on-demand sales, and mobile vending, but excludes sales taxes.
In addition to royalty fees, Ben Jerrys franchisees must also adhere to advertising obligations, which are also due on the 15th day of each month. Franchisees are required to submit a report by the 15th of each month detailing the amount of money contributed or spent on advertising during the previous month. This requirement ensures that franchisees are transparent and accountable regarding their advertising efforts and expenditures.