Franchising Since: 1976
Headquarters: Eden Prairie, Minnesota
Estimated Number of Units: 205
Franchise Description: The Häagen-Dazs Shoppe Company, Inc. is the franchisor. The parent corporation of Häagen-Dazs Shoppe Company is Dreyer’s Grand Ice Cream Company, Inc. The franchisor utilizes a proprietary and distinctive system for the operation of a network of Häagen-Dazs ice cream dipping shops. Häagen-Dazs shop franchisees operate an ice cream parlor serving dessert creations made with proprietary recipes featuring Häagen-Dazs brand ice cream and frozen dessert products. A shop is normally located in a storefront, strip center, or a mall.
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Training Overview: The training program, “Häagen-Dazs University,” lasts six days, and is normally coordinated at the Häagen-Dazs training facility in Eden Prarie, Minnesota, or at another facility designated by the franchisor. In general, other than Häagen-Dazs University, the franchisor is not required to offer, nor does it require franchisees to attend any training program. However, the franchisor may occasionally provide franchisees with ongoing instruction in connection with a new menu item. The franchisor may also require franchisees to attend training, in lieu of terminating their franchise, if it is of the opinion that remedial training may enable them to correct a particular operation deficiency. The franchisor provides franchisees with such opening assistance as it deems appropriate, which, if they are new to the system, will include the physical presence of one or more Shoppe Company representatives for at least four person-days (based on an eight hour work day, just before, during, and/or right after they first open the shop).
Territory Granted: Franchisees will not receive an exclusive territory. Franchisees 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. If the franchisor grants a protected area to franchisees, then the Franchise Agreement will provide that, as long as they perform their obligations under the Franchise Agreement, the franchisor will not establish or license another person to establish a Häagen-Dazs shop within the protected area granted. The protected area that franchisees will be granted, if any, is based upon the specific location of the franchisee’s shop.
Obligations and Restrictions: Franchisees, or a person designated by the franchisee (and approved by Shoppe Company) if the franchisee is a corporation or partnership, must devote their best efforts and personal, full time and attention to the management of the shop, including a minimum of 40 hours per week of the franchisee’s or the manager's on-premises supervision. If franchisees own more than one Häagen-Dazs shop, then they may divide their time between or among those shops, so long as they hire adequate management personnel to perform the proper operation of their shops. Franchisees may not conduct any other business or activity at the shop, or in connection with the shop, except to the extent Häagen-Dazs permits a “shared resources” situation. Unless the franchisor gives written consent to a limited menu, franchisees must offer all menu items required by the franchisor, and may offer any optional menu items authorized by the franchisor.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. A single renewal term of 10 years is available, if requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other financial obligation.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $30,000 | $30,000 |
| Travel and Living Expenses to Attend Application Interview | $1,189 | $1,189 |
| Travel and Living Expenses During Training | $3,079 | $3,079 |
| Leasehold Improvements | $105,000 | $325,000 |
| Deposits and Licenses | $7,500 | $17,500 |
| Equipment, Fixtures and Furnishings | $50,000 | $115,000 |
| Opening Inventory | $6,000 | $10,000 |
| Insurance | $1,500 | $2,500 |
| Additional Funds - 3 Months | $10,250 | $63,500 |
| ESTIMATED TOTAL (for a new shop) | $214,518 | $567,768 |
Other Fees
| Type of Fee | Amount |
| Continuing Royalty Fee | 4% of gross sales. |
| General Marketing Contribution | $6,000 per year for a shop (at this time). |
| Local Marketing Contribution | 1% of gross sales. |
| Transfer Fee | $7,500 |
| Product Purchases | Varies. |
| Inspection Fees | $100 per hour plus actual expenses. |
| Audit Fees | Costs of audit including legal fees. |
| Alternative Supplier Review Fee | All reasonable expenses incurred. |
| Remedial Training Fee | All reasonable expenses incurred. |
| Remedial Costs and Administrative Fee | All expenses incurred to correct non-conforming condition plus 15% of the costs the franchisor incurs. |
| Late Payment Charge | 10% of late payment; interest at up to 18% per year. |
| Renewal Fee | 50% of the then-current fee being charged to existing franchisees for a new, traditional Häagen-Dazs shop. |
| Remodeling Delinquency Fee | 2% of gross sales from when the shop was required to be remodeled until the shop is actually remodeled. |
| Meeting Attendance Fee | $0 to $2,000 |
| Missed Meeting Fee | $0 to $2,000 |
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