Can Ben Jerrys use the Fund for sponsoring athletic teams?
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 marketing fund that Ben Jerrys has established can be used for sponsoring athletic teams. Specifically, contributions to the fund can be used to cover the costs of maintaining and conducting marketing, advertising, public relations, and promotional programs. These activities also extend to socially responsible activities that align with Ben & Jerry's social mission.
Ben & Jerrys details that the fund can be used for the sponsorship of organizations and events, which includes athletic teams, fundraising activities, and tournaments. This means that a portion of the mandatory contributions to the fund, which is two percent of gross sales, may be used for these types of sponsorships. However, Ben & Jerrys is not obligated to ensure that any particular franchisee benefits directly or proportionally from the fund's expenditures.
Ben & Jerrys has the right to direct all marketing programs and determine the concepts, materials, and media used. While franchisees contribute to the fund, Ben & Jerrys ultimately decides how the money is spent. The franchisee's contributions are not held in trust, and Ben & Jerrys does not have a fiduciary obligation to the franchisee regarding the fund. This gives Ben & Jerrys considerable discretion in how the fund is managed and used for marketing and promotional activities, including sponsorships.