Ben & Jerry's Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$154,200 - $526,300
Total US Locations
19
Business Summary
Ben & Jerry's Special Venue Scoop Shop Program allows franchisees, typically contract feeders, to operate Ben & Jerry's ice cream scoop shops within special purpose venues like airports, stadiums, or educational institutions. These shops feature an approved menu of ice cream, frozen yogurt, sorbet, frozen desserts, toppings, confections, novelties, fountain drinks, and other food and beverage items, and are located within or in connection with the approved managed services business of the franchisee.
Corporate History
Ben & Jerry's Homemade, Inc. was incorporated in Vermont in December 1977 and began operating in the ice cream business in 1978. It first started offering franchises for Ben & Jerry's Shops in August 1981. Ben & Jerry's Franchising, Inc. was incorporated as a Vermont corporation in December 1997. It began operating company-owned Ben & Jerry's Shops in February 1999, and on December 29, 2000, it officially became the franchisor for the Ben & Jerry's System, acquiring all related assets and franchise agreements from its parent. In March 2024, Unilever, the indirect parent company, announced plans to spin off all its ice cream brands, including Ben & Jerry's, into a new publicly traded company called Magnum Ice Cream Company by the end of 2025.
Financial Overview
Investment Range
$154,200 - $526,300
Franchise Fee (High)
$18,000
Royalty %
3%
Marketing %
2%
Equipment Costs (Low)
$76,900
Equipment Costs (High)
$382,500
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Ben & Jerry's Franchising, Inc. appears to be in sound financial health, with its consolidated financial statements for December 31, 2024 and 2023 receiving an unqualified audit opinion from KPMG LLP. The company reported increasing net profits and positive cash flow from operations in both 2023 and 2024, with net profits of $1,294 thousand in 2024 and $1,161 thousand in 2023. As of December 31, 2024, Ben & Jerry's had $1,487 thousand in cash, with total current assets of $37,596 thousand significantly exceeding current liabilities of $19,789 thousand. The company benefits from a parental support letter from Ben & Jerry's Homemade, Inc., guaranteeing financial backing until at least April 30, 2026, and a commitment from Conopco, Inc. to provide additional funding if necessary. Directors have stated that plans by Unilever to spin off its ice cream business are not expected to impact the company's financial statements or its going concern status for the next 12 months.
Financing Details
Ben & Jerry's Franchising, Inc. does not offer any direct or indirect financing to its franchisees. This means that Ben & Jerry's will not provide loans, guarantee notes, leases, or other obligations. Franchisees will not receive any form of trade credit for products or services purchased from the franchisor.
Performance Metrics
Total US Locations
19
Franchised Units
17
Corporate Units
2
Avg Square Footage
558
Franchising Since
1981
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
6
Litigation Summary
Ben & Jerry's Franchising, Inc. has several litigation matters to disclose. There are two active lawsuits. In November 2024, Ben & Jerry's Homemade, Inc. and its independent board sued Conopco, Inc. and Unilever PLC (parent companies) in New York, alleging breaches of a 2000 acquisition agreement and a previous settlement. A motion to dismiss this complaint is pending. Additionally, in January 2025, Dana Hughes filed a lawsuit against Ben & Jerry's Homemade, Inc. in California, alleging violations of the state's Trap and Trace Law due to a partnership with TikTok to identify consumer locations and identities on its website. Ben & Jerry's Homemade is challenging this complaint. Regarding concluded litigation, Ben & Jerry's Homemade, Inc. was involved in a class action lawsuit filed in March 2023 by Dovid Tyrnauer, alleging deceptive business practices related to migrant child labor in its supply chains. This case was dismissed in August 2024. In July 2021, two class action lawsuits (Ben-Ami and Spiegelman Cases) were filed in Israel against Ben & Jerry's Homemade, Inc. following its announcement to cease product sales in certain territories. These cases were settled for a combined nominal amount of $25,000 and dismissed in December 2022 after a new distribution agreement was reached. Lastly, a licensee, Avi Avraham Zinger and American Quality Products Ltd., sued Ben & Jerry's Homemade, Inc. and Unilever in March 2022 to prevent the termination of their license agreement. This case was settled in June 2022 with a new business arrangement for product sales in Israel and the West Bank.
Bankruptcy History
Ben & Jerry's Franchising, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew, Ben & Jerry's franchisees may apply for one additional 5-year term. They must provide written notice between six and nine months before the current agreement ends. Franchisees must not have any overdue monetary or other obligations to Ben & Jerry's, its affiliates, or approved suppliers, and must have substantially complied with all agreement terms. They will need to sign a general release of claims against Ben & Jerry's, execute the then-current form of franchise agreement (which may have different terms, but no initial franchise fee), meet current qualification and training requirements, and renovate their shop to match Ben & Jerry's current brand image. Proof of the right to occupy the location for the renewal term is also necessary, along with a $5,000 renewal fee.
Training & Support Program
Franchisor Assistance
Before opening, Ben & Jerry's assists with site review and preliminary design approval, provides standardized design plans and specifications, and offers initial Scoop U Training for up to three trainees. They also provide on-site pre-opening and opening supervision and grant electronic access to the operations manual. On an ongoing basis, Ben & Jerry's makes marketing and promotional materials available (some from the Fund, others at their discretion), provides advice and written materials on managing and operating the shop (including inventory control, layout, product development, and marketing techniques), and conducts inspections. Ben & Jerry's manages all marketing programs, with full control over concepts, materials, and media. They also endeavor to make approved products and other items available for purchase, typically within 21 days of an order, and provide an annual accounting of the marketing Fund.
Initial Training Hours
24
Training Location
South Burlington, Vermont and Waterbury, Vermont
Ongoing Support
Ben & Jerry's provides ongoing advice and written materials to franchisees on shop management, including inventory control, new developments in shop layout and design, products, and marketing techniques. The franchisor conducts regular inspections of shop operations. Marketing and promotional materials are made available, and Ben & Jerry's manages all marketing programs, with sole discretion over concepts and media. Franchisees, their managers, and other employees may be required to attend additional training courses and seminars periodically, for which a fee may be charged. Every five years, franchisees must attend specific training programs required by Ben & Jerry's. The franchisor also facilitates a Franchisee Advisory Council and a Manager Advisory Council to promote open communication and gather feedback from the franchise system.
Franchise Requirements
Ideal Candidate Profile
Ben & Jerry's is seeking franchisees who are primarily contract feeders or providers of food and managed services to institutional facilities. Ideal candidates for a Ben & Jerry's Special Venue Scoop Shop are individuals or businesses with experience in contract feeding and providing managed services. For those qualifying for the Manager-to-Franchisee Pathways Program, Ben & Jerry's looks for candidates with at least a 20% ownership interest, a minimum of one year of experience as a Ben & Jerry's Scoop Shop manager, demonstrated participation in the Ben & Jerry's System, and a commitment to Ben & Jerry's three-part mission (product quality, economic sustainability, and social responsibility). Franchisees, or a designated owner with at least a 20% beneficial interest, must dedicate full time and best efforts (a minimum of 40 hours per week) to the management and operation of the shop and successfully complete Scoop U Training. Candidates must also demonstrate competence with computer applications, verbal and written language skills, mathematical applications, and the ability to prepare a business plan.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Min Years Experience
1
Operational Details
Location Type
Retail
Owner Participation
full-time
Territory Type
non-exclusive
Territory Size Requirements
Ben & Jerry's Special Venue Scoop Shop territories are not defined by a specific radius or population. Instead, each territory is defined by an "Authorized Location" within a larger "Institutional Facility," such as an airport, stadium, business complex, or educational institution. The specific geographic area for the shop, known as the "Special Venue," is determined and specified within the individual Franchise Agreement. Franchisees operate within these defined Special Venues, without an exclusive territory, and may face competition from other Ben & Jerry's outlets or distribution channels outside of their specific Special Venue.
Staffing Notes
Ben & Jerry's Special Venue Scoop Shop franchisees are solely responsible for all employment decisions, including hiring, firing, and discipline, and have full authority and control over their shop's day-to-day operations and employees. Each shop must be under the direct supervision of the franchisee or a manager who has successfully completed Ben & Jerry's Scoop U Training. Franchisees must maintain a competent, conscientious, and trained staff, ensuring employees provide good customer relations and prompt, courteous service, meeting standards outlined in the operations manual. The franchisor provides a system designed for employee training.