Ben & Jerry’s Franchise FDD, Profits, Costs & Fees (2024)

Ben & Jerry’s is a well-known ice cream brand with a strong commitment to social responsibility. Founded in 1978 by Ben Cohen and Jerry Greenfield in Burlington, Vermont, where its headquarters remain, the company began franchising in 1981.

It offers entrepreneurs the chance to open a Scoop Shop and become part of its mission of spreading “Peace, Love, & Ice Cream.” Renowned for its quirky and creative ice cream flavors, Ben & Jerry’s also stands out due to its activism.

The brand focuses on fair trade sourcing, supporting small farmers, and using sustainable practices. This unique social mission, integrated into its business model, helps differentiate Ben & Jerry’s from its competitors.

With over 600 Scoop Shops worldwide, the brand continues to expand its franchise presence in the U.S., inviting franchisees who are community-oriented and aligned with the company’s ethical principles.

Ben & Jerry’s Franchise Stats

Ben & Jerry's

Number of units: 155 franchises
Initial investment: $156,000 - $549,000
Average revenue (AUV): $524,000

Initial Investment

How much does it cost to start a Ben & Jerry’s franchise? It costs on average between $155,900 and $549,300 to start a Ben & Jerry’s franchised ice cream shop.

This includes costs for construction, equipment, inventory, and initial operating expenses. These costs are influenced by factors such as location, shop size, and build-out requirements. Indeed, Ben & Jerry’s offers 2 types of franchises:

Shop TypeInitial Investment Range
Full-Sized Shop$237,800 to $549,300
In-Line Shop$205,800 to $384,800
Kiosk Scoop Shop$155,900 to $331,800

We are summarizing below the main costs associated with opening a Ben & Jerry’s franchised Full-Sized Shop. For more information on costs required to start a Ben & Jerry’s franchise, refer to the Franchise Disclosure Document (Item 7).

Type of ExpenditureAmount
Preliminary Agreement Deposit$5,000 to $10,000
Initial Franchise Fee$8,000 to $39,500
Plans, Development & Permits$3,500 to $12,000
Leasehold Improvements & Construction$85,000 to $230,000
Furniture, Fixtures, Equipment, Casework$65,000 to $135,000
Signage$5,000 to $17,500
Professional Fees$3,000 to $6,000
POS$1,800 to $2,300
Internet Connectivity and Telephone$1,000 to $1,500
Deposits$3,000 to $8,000
Initial Training$1,000 to $3,000
Inventory$8,000 to $14,000
Insurance$500 to $2,500
Grand Opening Advertising$3,000
Additional Funds (3 months)$50,000 to $75,000
TOTAL$237,800 to $549,300

Average Revenue (AUV)

How much revenue can you make with a Ben & Jerry’s franchise? A Ben & Jerry’s franchised business makes on average $524,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Ben & Jerry’s fdd item 19

This compares to $506,000 yearly revenue for similar ice cream franchises. Below are 10 Ben & Jerry’s competitors as a comparison:

Ben & Jerry’s competitors

Ben & Jerry’s Franchise Disclosure Document

Recent Legal Disputes and Litigation

One key legal dispute involving Ben & Jerry’s occurred in 2008 when franchisees filed a lawsuit claiming the company misrepresented potential earnings and violated exclusivity agreements. The plaintiffs argued that Ben & Jerry’s allowed nearby restaurants to sell its products, harming their business.

The case was partially dismissed, but some claims were allowed to proceed, illustrating the legal complexities surrounding franchise agreements.

Another significant legal dispute began in 2022, when Ben & Jerry’s sued its parent company, Unilever, over a decision to sell its ice cream in the West Bank.

The Ben & Jerry’s Board argued that this move violated their 2000 merger agreement, which guaranteed the board autonomy over social mission-related decisions. A U.S. court denied Ben & Jerry’s request for an injunction, ruling that the alleged harm was speculative.

These cases highlight both financial and ethical disputes in franchise relationships.

Frequently Asked Questions

How many Ben & Jerry’s locations are there?

As of the latest available data, Ben & Jerry’s has approximately 600 locations worldwide. These include both company-owned and franchise-owned Scoop Shops. The majority of these locations are franchise-owned, with a significant presence in the United States and internationally.

What is the total investment required to open a Ben & Jerry’s franchise?

The total investment required to open a Ben & Jerry’s franchise ranges from $156,000 to $549,000.

What are the ongoing fees for a Ben & Jerry’s franchise?

For a Ben & Jerry’s franchise, ongoing fees include a royalty fee of up to 5% of gross sales. This fee covers the use of the Ben & Jerry’s brand, systems, and ongoing support provided to franchisees.

Additionally, franchisees are required to contribute 2% of gross sales towards national marketing efforts, which fund broad-scale advertising campaigns for the brand. There is also a local marketing commitment of 2%, which is allocated towards promoting the individual franchise location within its market.

What are the financial requirements to become a Ben & Jerry’s franchisee?

To become a Ben & Jerry’s franchisee, you need a minimum net worth of $350,000 and $100,000 in liquid capital. These financial requirements ensure that prospective franchisees have sufficient resources to cover the initial investment and operational costs.

How much can a Ben & Jerry’s franchise owner expect to earn?

The average gross sales for a Ben & Jerry’s franchise are approximately $0.52 million per location. Assuming a 15% operating profit margin, $0.52 million yearly revenue can result in $78,000 EBITDA annually.

Who owns Ben & Jerry’s?

Ben & Jerry’s is owned by Unilever, a multinational consumer goods company. Unilever acquired Ben & Jerry’s in 2000 as part of a merger agreement. Despite being owned by Unilever, Ben & Jerry’s operates with a degree of autonomy, particularly in matters related to its social mission and brand integrity, which are overseen by an independent board of directors.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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