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Ben & Jerry's Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
To open a Ben & Jerry's franchise, you need to prepare for a total initial investment ranging from $155,900 to $549,300. This includes a franchise fee of $39,500. Additionally, you'll need to have between $50,000 to $75,000 in cash readily available and a net worth of $100,000 to $500,000. Understanding these financial commitments is crucial before taking the plunge into franchise ownership.
As a franchisee, you will be responsible for ongoing fees that include a royalty fee of 5% of your unit's revenue and a marketing fee of 4%. These fees contribute to the overall brand strength and marketing efforts that help drive customer traffic to your location. Being aware of these ongoing costs will help you better manage your financial expectations as a franchise owner.
Ben & Jerry's franchise units have shown impressive financial performance, with an average annual revenue of $289,708 and a median annual revenue of $585,373. The lowest annual revenue reported is $99,650, while the highest reaches an impressive $2,308,795. Understanding these figures can help potential franchisees gauge the earning potential and assess the viability of their investment.
The breakeven time for a Ben & Jerry's franchise is approximately 12 months, which indicates a relatively quick return on your initial investment. Furthermore, the investment payback period is estimated at 19 months, allowing franchisees to start seeing a return on their investment in a timely manner. These metrics are essential for evaluating the financial outlook of your franchise journey.
Ben & Jerry's Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
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Ben & Jerry's Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
Units | 2021 | 2022 | 2023 |
---|---|---|---|
Total Units | 163 | 157 | 151 |
Net Change YoY | -6 | -6 | |
Franchised Units | 161 | 155 | 149 |
Net Change YoY | -6 | -6 | |
Corporate Units | 2 | 2 | 2 |
Net Change YoY | 0 | 0 |
Ben & Jerry's is a well-known ice cream franchise that has been delighting customers since 1978. With a commitment to high-quality, all-natural ingredients and innovative flavors, Ben & Jerry's has built a loyal customer base. The franchise operates in various locations worldwide, offering not just ice cream but also a unique brand experience that emphasizes social responsibility and environmental sustainability.
To become a Ben & Jerry's franchisee, the initial investment ranges from $155,900 to $549,300. This includes a franchise fee of $39,500. Potential franchisees should have a cash reserve of $50,000 to $75,000 and a net worth between $100,000 and $500,000 to ensure they can support their business in the early stages.
Ben & Jerry's franchises show promising financial potential, with average annual revenue per unit reported at $289,708 and median annual revenue at $585,373. The lowest annual revenue recorded is $99,650, while the highest peaks at $2,308,795. These figures highlight the opportunity for profitability within the franchise model.
Ben & Jerry's requires franchisees to pay a royalty fee of 5% of gross sales, along with a marketing fee of 4%. These fees contribute to the brand's national marketing efforts and help maintain the franchise's strong market presence.
Franchisees can expect annual operating expenses to range between $155,900 and $331,800. Key expenses include rent and utilities ($50,000 - $75,000), insurance ($500 - $2,500), and management salaries ($50,000 - $75,000). Understanding these costs is critical for effective financial planning and profitability.
As of 2023, Ben & Jerry's operates 149 franchised units, down from 161 in 2021. Despite the reduction in franchised units, the brand maintains a steady presence with 2 corporate-owned locations. The breakeven time for new units is approximately 12 months, with an investment payback period of about 19 months, indicating a relatively quick return on investment for franchisees.
Frequently Asked Questions
The initial investment for a Ben & Jerry's franchise ranges from $155,900 to $549,300, which includes the franchise fee and other startup expenses.