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Baskin Robbins Franchise Cost & Fees

Date Incorporation: 1946

Franchising Since: 1950

Headquarters: Canton, Massachusetts

 

Business Description: The franchisor is Baskin-Robbins Franchising LLC. Baskin-Robbins franchised restaurants sell Baskin-Robbins ice cream, related frozen products as well as other food items and products compatible with its concept.

 

Franchise Offer: The franchisee will operate a restaurant selling ice cream and related frozen products, beverages and other products and services that the franchisor approves.

 

Financial Assistance: The franchisor has lending contacts through third party lender(s) which may provide financing for qualified franchisees. The amount of financing and period of repayment varies by program, circumstances, and creditworthiness of the applicant.

 

Training and Assistance: The initial training program takes a total of 20 days (not including web-based training). The training program consists of five days Foundations Training conducted in the Burbank Training Center in California. Business Management training is a total of four days and is conducted at the Baskin-Robbins Training Center in Burbank, California, a five day Dessert Operations training program conducted at the Burbank Training Center in California. The franchisor also requires a total of six days of Restaurant operations training in a designated training Restaurant consisting of instructor demonstrations on how to store, merchandise, serve and package products sold in a Restaurant, followed by student practice serving guests. Some required classes are only offered on the Internet and are referred to as web based training. These classes will require approximately 40 hours to complete. In addition, for franchisees’ first Restaurant, the franchisor may require them to participate for two days in the opening of another Restaurant.

 

Territory: The franchisee is not granted any minimum territory. The franchisee will not be granted an exclusive territory, and may face competition from other franchisees, from outlets that owned by the franchisor, or from other channels of distribution or competitive brands that the franchisor controls.

 

Term of Agreement and Renewal: The length of the franchise term is typically 20 years (except Baskin-Robbins Express which is typically 5 or 10 years). There is conditional renewal for additional term of 20 years if, and only if, all requirements are met.

 

Obligations and Restrictions: As a new franchisee of an individual Restaurant, the franchisee may expect to perform a substantial amount of manual labor, especially during the first year of operation. Depending on the sales volume of the Restaurant, the franchisee should expect to work a full shift in the Restaurant every day. The franchisee’s personal “on-premises” supervision is not required. The on-premises manager must be trained in accordance with training requirements. The franchisee or designated on-premises manager is required to devote full time, energy and best efforts to the management and on-premises supervision of operation of the Restaurant. The franchisor requires the franchisee to confine his or her business to the operation of a Restaurant. The franchisee may not conduct any other business or activity at the Restaurant without prior written approval, and may only offer or sell products approved by the franchisor and must offer for sale the full menu prescribed by the franchisor.

 

Estimated Number of franchises Units: 7,075

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Real Estate Development $10,000 $120,000
Equipment, Trade Fixtures and Signs $30,000 $121,000
Electronic Cash Register/Retail Technology System $9,500 $16,100
Opening Inventory $5,000 $8,000
Miscellaneous Opening Costs $12,000 $24,000
Licenses, Permits, Fees and Deposits $2,000 $5,500
Uniforms $400 $800
Insurance $3,500 $8,300
Travel and Living Expenses While Training $300 $8,000
Marketing Start-Up Fee $3,000 $3,500
Additional Funds for First 3 Months of Operation $0 $50,000
ESTIMATED TOTALS $100,700 $390,200

 

Other Fees

Type of Fee Amount
Continuing Franchise Fee 5.9% of gross sales
Continuing Advertising Fee 5.0% of total gross sales
Franchise Transfer Fee (for a majority interest) $7,500
Franchise Transfer Fee (for less than a majority interest) Then-Current Fixed Document Fee, which is currently $1,000
Franchise Transfer Fee (transfer to spouse or children) Then-Current Fixed Document Fee, which is currently $1,000
Audit Costs Franchisor’s cost to audit the franchisee’s gross sales reports, including legal and accounting fees.
Immigration Status Review Costs Franchisor’s out-of-pocket costs to hire attorneys or others.
Interest, Late Fees, and Collection Costs Then current late fee or dishonored check fee, and if applicable, interest on unpaid amount at 1.5% per month or highest rate allowed by law.
Indemnification Varies
SDA Transfer Fee $10,000
SDA Transfer Fee (for less than a majority interest) Then-Current Fixed Document Fee, which is currently $1,000.
SDA Transfer Fee (transfer to spouse or children) Then-Current Fixed Document Fee, which is currently $1,000.
Lease Fees Varies
Fixed Document Fee Then-Current Fixed Document Fee, which is currently $1,000.
Costs for tests used to approve additional supplier(s) Franchisor’s out of pocket and internal costs allocated to this activity, typically $1,000 to $10,000 depending on the complexity of the testing.

The above information has been compiled from the FDD of Baskin-Robbins.

Year of FDD: 2013

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