Who is the ultimate parent company of Ben Jerrys Franchising, Inc.?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| BEN & JERRY'S FRANCHISING, INC. AND SUBSIDIARY | | | |---|---|---| | Consolidated Statements of Cash Flows | | | | (In Thousands) | | | | | 2023 | 2022 | | | | | | Cash flows from operating activities: | | | | Net profit (loss) from operations | 1,161 | (258) | | Adjustments to reconcile net profit (loss) to net | | | | cash provided by operating activities: | | | | Allowance for (recovery of) credit losses | 1 | (61) | | Depreciation and amortization | 152 | 152 | | Interest on financing lease | - | (1) | | Amortization of right of use asset, operating | 77 | 77 | | Amortization of right of use asset, financing | 36 | 37 | | Deferred income taxes | 225 | (67) | | Changes in operating assets and liabilities: | | | | Accounts receivable | (54) | (47) | | Inventories | (37) | 85 | | Prepaid expenses and other assets | (127) | 54 | | Due from parent, net | (4,826) | (3,112) | | Deposits | 4 | - | | Accounts payable | (136) | (145) | | Accrued liabilities | (414) | 140 | | Operating lease obligations | (76) | (73) | | Current tax liabilities | 165 | - | | Due to related party | 4,046 | 3,425 | | Deferred revenue | (74) | (145) | | Net cash provided by operating activities | 123 | 61 | | | | | | Cash flows from investing activities: | | | | Purchases of fixed assets | (8) | - | | Net cash used in investing activities | (8) | - | | | | | | Cash flows from financing activities: | | | | Payments on financing lease obligations | (36) | (35) | | Net cash used in financing activities | (36) | (35) | | Increase in cash | 78 | 26 | | | | | | Cash at beginning of year | 1,308 | 1,282 | | | | | | Cash at end of year | $ 1,386 | $ 1,308 | | | | | | See accompanying notes to consolidated financial statements | | | Notes to Consolidated Financial Statements
December 31, 2024 and 2023
(Dollars in Thousands)
(1) Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies
(a) Organization
Ben & Jerry's Franchising, Inc. (the Company) is a wholly owned subsidiary of Ben & Jerry's Homemade, Inc. (Homemade or Parent). At the Company's inception, December 3, 1997, it issued 100 shares of $1 par value common stock to its' Parent, the sole owner of the stock issued. Homemade is a wholly owned subsidiary of Conopco, Inc. (Related Party), a New York corporation, which is an indirect subsidiary of Unilever, N.V. of Rotterdam and Unilever, PLC of London (together, Unilever). Conopco, Inc. is a holding company for Unilever's principal operations in the United States. Unilever, through its subsidiaries, is a global manufacturer and marketer of high quality, brand name products for consumers throughout the world.
The Company established a legal entity in 2010, Ben & Jerry's Gift Card LLC, (the Subsidiary) in Florida as a subsidiary of the Company.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben & Jerry's Franchising, Inc. is a wholly-owned subsidiary of Ben & Jerry's Homemade, Inc. Ben & Jerry's Homemade, Inc. is a wholly-owned subsidiary of Conopco, Inc., which is an indirect subsidiary of Unilever, N.V. of Rotterdam and Unilever, PLC of London (together, Unilever). Therefore, the ultimate parent company of Ben & Jerry's Franchising, Inc. is Unilever, N.V. of Rotterdam and Unilever, PLC of London (together, Unilever).
This multi-layered corporate structure means that while Ben Jerrys franchisees interact directly with Ben & Jerry's Franchising, Inc., the financial performance and strategic decisions of Ben Jerrys are influenced by these larger entities. Unilever's role as the ultimate parent company suggests that Ben Jerrys is subject to the policies and financial expectations of a large, multinational corporation.
For a prospective franchisee, this information provides insight into the overall stability and resources available to Ben Jerrys. The backing of Unilever, a global manufacturer, implies a certain level of financial security and access to resources that might not be available to a franchise system owned by a smaller entity. However, it also means that Ben Jerrys's operations and decisions could be subject to the priorities and strategies of Unilever, which may not always align perfectly with the interests of individual franchisees.
It's also worth noting that Unilever announced plans to separate its Ice Cream business as a separate standalone business on March 19, 2024. However, the 2025 FDD states that this separation is not expected to have any impact on the financial statements of Ben Jerrys Franchising, Inc. for the year ended December 31, 2024, nor is it expected to impact the company's ability to continue as a going concern for the next 12 months. This is something a prospective franchisee may want to monitor as the separation progresses.