BEN AND JERRY’S Franchise Startup Cost, Profit & Opportunities
The Ben and Jerry’s franchise is a franchise opportunity that prides itself as a business that first put smiles on the faces of its clients. Offering unique franchising opportunities that ensure that franchisees enjoy what they do while making profits, the Ben and Jerry’s franchise specializes in the provision of services that include frozen yoghurt, smoothies, sorbet and ice cream products.
Founded by childhood friends Ben Cohen and Jerry Greenfield, the first Ben and Jerry’s outlet was opened in 1978. With Ben and Jerry’s Homemade Inc as its parent company and with its corporate headquarters located in South Burlington, Vermont, Ben and Jerry’s opened its franchising arm for investment in 1981. Jostein Solheim is Ben and Jerry’s current CEO.
The Benefits of Owning a Ben and Jerry’s Franchise
All Ben and Jerry’s franchisees benefit from a strong support network that ensures they are not left stranded all through the duration of the contract term. Support is provided on an ongoing basis and includes marketing support, including training sessions organized to update the knowledge of the franchisee on current industry trends and innovations. The franchisor also helps with marketing, creating maximum exposure, leading to increased patronage.
Because of the importance that location plays to any business venture, the Ben and Jerry’s franchisee has the freedom of choosing his/her own location, while being guided through the provision of aids using its proprietary tools including the provision of the necessary tips to make the best selection of location possible.
After the selection of the location, the location selected undergoes scrutiny from a site selection committee who reviews the selected site against its set template.
Ben and Jerry’s Franchising Inc. Startup Cost
There are startup costs to be incurred by all Ben and Jerry’s franchisees. These startup costs are mandatory, and consist of an Initial Investment sum of ranging from $156,385 to $486,000.
Other associated startup costs include a net-worth requirement sum of $350,000, and a liquid cash requirement of $100,000. These startup costs are a necessity for processing of a Ben and Jerry’s franchise.
Ben and Jerry’s Franchising Inc. Franchise Fee
The Ben and Jerry’s franchise charges its franchisees a franchise fee which they are required to pay. The franchise fee starts from $16,000 to $37,000.
Ben and Jerry’s Franchising Inc. Ongoing Costs
There are ongoing costs all Ben and Jerry’s franchisees are required to pay the franchisor. These ongoing costs are in the form of an ongoing royalty fee of 3%, and an advert royalty fee of 4%. However, the larger the franchise size, the higher the ongoing cost implications.
These ongoing costs are mandatory for all Ben and Jerry’s franchisees, as failure to meet this requirement will result in appropriate sanctions or outright withdrawal of the franchise opportunity.
Ben and Jerry’s Franchising Inc. Training and Support
All Ben and Jerry’s franchisees are required to undergo a training session organized by the franchisor to teach the necessary skills required to successfully run their franchises. The training session lasts a period of 8 days at the franchisor’s corporate headquarters.
Apart from this, another on-site training session lasting 3 to 4 days is organized to provide the required hands-on experience required for successful take-off of the franchise.
The support provided by the Ben and Jerry’s franchise covers vital areas of operation of the franchise. These are grouped under the ongoing support and the marketing support. Under the ongoing support, it covers areas such as field operations, a grand opening ceremony, occasional meetings and newsletter releases aimed at updating the skills of its franchises in addition to exposing them to the current trends and innovations within the industry.
Others include the provision of a toll-free line, in addition to the provision of internet services to all its franchisees. Marketing support is offered in the form of adverts in regional and national media, in addition to the provision of ad slicks.
Ben and Jerry’s Franchising Inc. Application and Terms of Agreement
The Ben and Jerry’s franchise operates two types of business models known as the scoop shops and the satellite shops respectively. For its scoop shop business type, the contract terms last a period of 10 years, while for its satellite shops, the contract term lasts a 5-year period.
However, in the event that the franchisee wants a renewal of the contract agreement, renewal is only considered for scoop shops. Satellite shops are not considered for renewal under the Ben and Jerry’s franchise terms of agreement.
How to Start the Franchise
To own a Ben and Jerry’s franchise, it requires that interested franchise candidates first indicate their interests. This is done through visiting the franchisors website on https://www.benjerry.com/scoop-shops/franchise all the necessary information about the Ben and Jerry’s franchise is made available on the website. There is an “initial enquiry form” section where the franchise candidate is expected to explain why he/she is interested in this franchise opportunity.
A button made available for the selection of the state of residence of the franchise candidate is found in the site. It is expected that the franchisor clicks on his state of residence. From here, several discussions are held between the franchise candidate and the franchisor through a representative. This is aimed at ensuring that the franchise candidate is qualified for this franchise opportunity.
If qualified, discussions on ownership and investments are carried out, leading to the eventual ownership of the franchise opportunity.
This article has provided the basic information and requirements needed for owning a Ben and Jerry’s franchise. With the information supplied, it is believed that the franchise candidate is in a better position to make informed investment decisions.