For Ben Jerrys, what was the total amount of revenues recognized at a point in time in 2022?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Revenues recognized over time: | ||
| Franchise fees | 33 | 24 |
| Royalty income | 2,603 | 1,594 |
| Advertising fees | 2,057 | 2,019 |
| Total revenues recognized over time | 4,693 | 3,637 |
| Revenues recognized at a point in time: | ||
| Net product sales | 5,770 | 4,338 |
| Commission revenue | 4,644 | 4,706 |
| Total Revenues recognized at a point in time: | 10,414 | 9,044 |
| Total revenues | $ 15,107 | $ 12,681 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the total revenues recognized at a point in time in 2022 were $9,044 (in thousands). This figure is comprised of two components: net product sales, which amounted to $4,338, and commission revenue, which totaled $4,706. These revenues are recognized when the performance obligations are satisfied at a specific moment, such as when a customer purchases ice cream or when the parent company sells products to its distribution network.
For a prospective Ben Jerrys franchisee, understanding the breakdown between revenues recognized over time versus at a point in time is crucial for financial planning and forecasting. Revenues recognized at a point in time, like net product sales, reflect immediate sales transactions, while revenues recognized over time, such as franchise and royalty fees, are earned gradually throughout the franchise agreement. This distinction impacts how revenue is reported and when it is available to cover operational expenses.
The FDD provides a clear picture of how Ben Jerrys recognizes revenue, which is essential for franchisees to align their accounting practices with the franchisor's. By understanding these revenue streams, franchisees can better assess their financial performance and make informed business decisions. It's also important to note that these figures are presented in thousands, so franchisees should be aware of the actual amounts involved in their financial analysis.
It is important for potential franchisees to review these figures in the context of their own business plans and market conditions. While the FDD provides historical data, future performance may vary based on factors such as location, competition, and operational efficiency. Therefore, thorough due diligence and consultation with financial advisors are recommended to ensure a comprehensive understanding of the financial aspects of operating a Ben Jerrys franchise.