What are the specific revenue streams that Ben Jerrys receives from its franchisees?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are the main revenue streams for Ben & Jerry's Franchising:
- Revenue arising from Franchisees:
- Franchise license fees
- Royalties
- Advertising fees
- Other revenues
- Net Product Sales from Company owned stores
- Commission Revenue from Parent
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the company has several revenue streams. Specifically, Ben Jerrys generates revenue from franchisees through franchise license fees, royalties, and advertising fees. These fees are crucial for the franchisor's financial health and ability to support the franchise system.
In addition to revenue from franchisees, Ben Jerrys also has other revenue streams. These include net product sales from company-owned stores and commission revenue from its parent company. The company-owned stores provide direct sales revenue, while commissions from the parent company contribute to overall earnings.
The document also mentions that Ben Jerrys recognizes commission revenue of 20% on the sales of bulk tubs of ice cream by Homemade, Inc. to both company-owned and franchise scoop shops. This commission revenue amounted to $4,449 in 2024 and $4,644 in 2023, highlighting the importance of this revenue stream. Understanding these various revenue streams is essential for prospective franchisees to assess the financial stability and potential growth of Ben Jerrys.