Ben & Jerry's
Date of Incorporation: 1977
Franchising Since: 1981
Headquarters: South Burlington, Vermont
Country: U.S.
Description: The franchisee will operate a "Ben & Jerry’s" ice cream scoop shop featuring a menu of ice-cream, ice milk, sorbet, frozen yogurt, soft serve, frozen deserts, toppings, confections, novelties, fountain drinks, and other food and beverage items.
Franchise Offer: Ben & Jerry's Scoop Shops are primarily engaged in the sale and distribution of Ben & Jerry's Products and Non-Proprietary Products under the System. There are four types of franchise available:
a) Scoop Shops - the most common types, Ben & Jerry's Shops that offer a full range of Ben & Jerry's Products
b) Satellite Shops – current franchisees are granted the right to operate additional locations
c) Test shops - Franchisee operates a limited operation facility on a short term basis (typically between 6 months to one year) to fully explore the potential of the location
d) Development agreement
Financial Assistance: The franchisor does not offer financing arrangements to the franchisee either directly or indirectly. The franchisor does not guarantee the franchisee’s note, lease or obligation.
Training and Assistance: Training lasts for a minimum of 6 days, provided for up to two trainees, and is located at central office headquarters in South Burlington, Vermont. The training must be completed prior to the opening of the franchise. A training certified franchisee or manager is required at the franchise location, on a full-time and best efforts basis.
Territory: Under the franchise agreement, a specified location and territory will be authorised to the franchisee. The size and scope of the territory depends on a number of factors including market demand, population, demographics, access, visibility, and future development plans. During the term of the franchise agreement, the franchisor will not establish or operate a shop in the defined territory.
Term of Agreement and Renewal: The term of the franchise agreement is ten years for Scoop Shops, and five years for both Satellite and Co-Branded Shops. The franchisee may renew for one additional period of ten years for Scoop Shops, and five years for Co-Branded Shops. There is no renewal option for Satellite Shops.
Obligations and Restrictions: The franchisee or the fully-training manager must devote full time and best efforts to the management and operation of the Shop. The franchisor must be notified of any replacement of the manager. Either the franchisee or fully-trained manager must at all times provide supervision to the shop. It is recommended that the franchisee provides the on-site supervision.
Total Number of Units: Over 800 units worldwide.
Investment Tables:
Initial Investment:
Based on a "Ben & Jerry's" Scoop Shop (Type A-Shop or B-Shop)
| Expenditures | Low | High |
|---|---|---|
| Preliminary Agreement Deposit | $16,000 | $16,000 |
| Initial Franchise Fee |
$32,000 $8,000 for Satellite Shop |
$32,000 $8,000 for Satellite Shop |
| Leasehold Improvements & Construction | $80,000 | $200,000 |
| Furniture, Fixtures, Equipment, Casework, and Small wares | $50,000 | $80,000 |
| Plans, Development & Permits | $3,500 | $12,000 |
| Signage | $5,000 | $15,000 |
| Professional Fees | $3,000 | $6,000 |
| POS and Telephone | $8,100 | $8,400 |
| Deposits | $3,000 | $8,000 |
| Initial Training | $1,000 | $3,000 |
| Opening Onventory | $8,000 | $14,000 |
| Insurance | $500 | $2,500 |
| Grand Opening Advertising | $3,000 | $3,000 |
| Subtotal | $197,100 | $383,900 |
| Additional Funds – 3 months | $55,000 | $55,000 |
| Total | $252,100 | $438,900 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 3% of Gross Sales |
| Advertising Obligations |
Varies but does not exceed 4% of Gross Sales Current Allocation: Local advertising and Promotion 2% Fund Contributions : 2% Cooperative Contributions: none |
| Transfer Fee | $10,000 |
| Renewal | $15,000 |
| Training for New or Replacement Manager(s) | The then-current fee for training (currently $1,800) |
| Refresher Training | Varies |
| Fees related to Computer System and Software | In the range of $8,100 - $8,400 in annual fees for the required computer system and license. |
| Audit by Franchisor | Costs and expenses connected with inspection and audit (including travel, lodging, wages, expenses and reasonable accounting and legal costs) |
| Re-Inspection Fee | Varies |
| Interest on overdue payments | 1.5% per annum or maximum rate permitted by law |
| Fee on Returned Checks | Varies, fees or charges incurred by franchisor for the returned check |
| Insurance Procurement | Cost of procuring insurance for franchisee |
| Relocation Fee | $3,000 |
| Securities Offering | Varies under circumstances |
| Costs and Attorney’s Fees | Varies under circumstances |
| Indemnification | Varies under circumstances |
| Refurbishment Expense | Varies under circumstances |
| Product and Supplier Evaluation and Testing Fee | Cost and expenses incurred by Franchisor in connection with the product/supplier evaluation and testing |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD and online sources of Ben & Jerry's.
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