What was the total amount of revenues that Ben Jerrys recognized at a point in time in 2023?
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 |
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 2023 were $10,414 (in thousands). This figure is comprised of two components: net product sales, which amounted to $5,770 (in thousands), and commission revenue, which totaled $4,644 (in thousands). These revenues are recognized when the performance obligations are satisfied at a specific point in time, 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 of revenue recognition is crucial. Revenues recognized at a point in time reflect immediate sales, while revenues recognized over time, such as franchise fees and royalties, are spread out over the duration of the franchise agreement. The significant contribution of net product sales to the 'point in time' revenue indicates the importance of in-store sales for Ben Jerrys's revenue model.
Commission revenue, also recognized at a point in time, is derived from the parent company's sales of ice cream products and ingredients specific to the franchise business. This commission is earned when these products are sold by the parent to Unilever's North America Supply Chain Company (UNASCC), which then sells the products to the distribution network. This revenue stream highlights the interconnectedness between Ben Jerrys and its parent company, as well as the reliance on the parent company's sales and distribution network for a portion of its revenue.
Overall, the $10,414 (in thousands) in revenues recognized at a point in time in 2023 demonstrates the immediate revenue generated through product sales and commissions, providing a snapshot of Ben Jerrys's financial performance during that period. A potential franchisee should consider these revenue streams when evaluating the financial viability of a Ben Jerrys franchise, taking into account the factors that influence both net product sales and commission revenue.