What was the total amount of royalty income that Ben Jerrys recognized in 2023?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
right-of-use assets | $ 36 | $ 37 | | Total finance lease expense | 36 | 37 | | Operating lease expense | $ 84 | $ 84 | | Variable lease expense | 36 | 36 | | Total lease expense | $ 156 | $ 157 |
Notes to Consolidated Financial Statements (Dollars in Thousands) December 31, 2023 and 2022
(7) Revenue recognition
(a) Disaggregation of revenue
Revenues are disaggregated by timing of revenue recognition related to contracts with customers ("ASC 606") as follows:
| | 2023 | 2022 | |----------------------------
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 recognized $2,603 in royalty income during 2023. This figure represents income earned from franchisees based on a percentage of their sales. Royalty income is a crucial revenue stream for Ben Jerrys, as it reflects the ongoing success and sales volume of its franchise locations.
For a prospective franchisee, this indicates the financial health and stability of the Ben Jerrys franchise system. A higher royalty income suggests a strong network of successful franchisees, which can be an attractive factor for new investors. It also demonstrates Ben Jerrys's ability to generate revenue from its brand and operational model.
It's important to note that this royalty income is just one component of Ben Jerrys's total revenue. The company also generates income from net product sales, commission revenue, franchise fees, and advertising fees. Reviewing all revenue streams provides a comprehensive understanding of Ben Jerrys's financial performance and its reliance on various sources of income.