Can Ben Jerrys use the Fund for public relations activities?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2.2 The Fund, all contributions thereto, and any earnings thereon, shall be used to meet any and all costs of maintaining, administering, directing, conducting, and preparing marketing, advertising, public relations, and/or promotional programs and materials, and any other activities including socially responsible activities consistent with BEN & JERRY's social mission, including, among other things, the costs of preparing and conducting media marketing campaigns (including Social Media) and developing, promoting and marketing the names of ice cream flavors to make political and other social statements; direct mail advertising; marketing surveys and other public relations activities; employing advertising and/or public relations agencies to assist therein; sponsorship of organizations and events, including athletic teams, fund raising activities, tournaments and other similar activities; purchasing promotional
items; conducting and administering in-store promotions; and providing promotional and other marketing materials and services to the Shops operating under the System;
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the Fund that franchisees contribute to can be used for public relations activities. Ben & Jerry's has the authority to use the Fund to cover the costs of maintaining, administering, and preparing marketing, advertising, public relations, and promotional programs. This includes employing advertising and/or public relations agencies.
Ben & Jerry's directs all marketing programs and decides on the concepts, materials, and media used. However, Ben & Jerry's is not obligated to ensure that each franchisee benefits directly or proportionally from the Fund's expenditures. The contributions to the Fund are not held in trust, and Ben & Jerry's does not have a fiduciary duty to franchisees regarding these contributions.
Franchisees are required to contribute a percentage of gross sales to the Fund, as specified by Ben & Jerry's. These contributions are non-refundable and are used to support marketing and promotional activities for the Ben & Jerry's system. Franchisees can request an annual accounting of the Fund's receipts and disbursements from Ben & Jerry's.