Under what circumstances might Ben Jerrys require a franchisee to participate in a Cooperative?

According to Ben Jerrys's 2025 Franchise Disclosure Document, Ben Jerrys has the right to designate geographical areas to establish regional marketing and promotional cooperatives. If a Cooperative exists in the area where a franchisee's shop is located, Ben Jerrys may require the franchisee to participate in and contribute to that Cooperative. The amount of the contribution will be determined by Ben Jerrys, but it will not exceed the maximum for Advertising Obligations. Currently, there are no Cooperatives in the Ben Jerrys system.

This means that a prospective Ben Jerrys franchisee might be required to participate in a regional marketing cooperative if one is established in their area. This participation would involve contributing a portion of their gross sales towards regional advertising and promotional efforts managed by the Cooperative. The franchisee would need to factor in this potential advertising expense when evaluating the financial feasibility of the franchise.

While the FDD specifies that the cooperative contribution will not exceed the maximum for advertising obligations, it does not specify what that maximum is in percentage or dollar terms. The franchisee should inquire about the specific maximum percentage of gross sales that could be required for advertising obligations, including cooperative contributions, to fully understand the potential financial impact. Additionally, the franchisee should ask about the criteria Ben Jerrys uses to determine when a Cooperative is established and how the contribution amount is calculated.