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The True Franchise Cost Breakdown of Baskin Robbins
Baskin-Robbins started its operations back in 1946 and opened its doors for franchisees in 1950. It was an idea brought by the passion of two people who are ice cream enthusiasts themselves. Their headquarters is in Canton, Massachusetts, and currently has 8,070 units in more than 30 countries. As the demand goes higher each year, people are looking for more information such as the Baskin Robbins franchise cost, with high hopes of running their own ice cream restaurant.
Franchise Description
The main franchisor of the company is Baskin-Robbins Franchising LLC and is a part of Dunkin’ Brands, Inc. They sell their famous ice creams, frozen items, and other food that are compatible with the main business. The company was also the first one to introduce the ice cream cake to the public.
Franchisee Training
Apart from knowing the estimated Baskin Robbins franchise cost, you must also understand the other requirements before you can operate your own unit. This includes the company’s training program.
Their program runs for a total of ten days using a classroom phase. Take note that this does not include online training and in-restaurant practice. The franchisor will provide a designated restaurant where the franchisee will have to train for five days. During the training, one will learn different handling practices according to the franchisor’s standards.
In some cases, you will be required to attend online classes and it is usually around 16 hours to finish. All employees should undergo necessary training as required by the franchisor.
Territory
The franchisees are allowed to operate one unit or restaurant at a specified location stipulated in the Franchise Agreement. They will not be granted any additional rights or any minimum territory.
Franchisee Obligations
During the first year of operations, the franchisee will be required to accomplish a certain amount of manual labor. They are expected to work full-shift every day, and the number of hours could decrease if the restaurant consistently hits the sales target.
There is no need for the on-premise supervision of the franchisee. However, the manager should be trained according to the requirements of the franchisor. Likewise, it is highly encouraged that the manager will have an ownership interest in the business, but this is not mandated.
The franchisees are not allowed to have any other businesses in the restaurant unless there is approval from the franchisor.
Term of Agreement
The duration of the agreement is generally for 20 years. It can be renewed for another 20 years if all the requirements are accomplished and met.
Financial Assistance
The franchisor could help you get assistance from certain lending companies. The amount and other terms are based on the credibility of the franchisee.
Did You Know?
Wondering if you should get your own unit of Baskin Robbins? Here are a few interesting things about the company.
31 Flavor Concept
Baskin-Robbins is the world’s only ice cream chain that has the 31-flavor concept. It simply means they have different flavors every day of the month. And with the wide selection to choose from, most people will certainly have a couple of favorites. Thus, they will keep on coming back for more.
Some of the bestsellers are the Banana Nut Fudge, Cherry Macaron, Date Nut, Eggnog, French Vanilla, Green Mint, Lemon Crisp, Maple Nut, Orange Sherbet, Peach, Peppermint Fudge Ribbon, and Rocky Road, among many others.
They also have a more creative approach in selling their ice cream by using a sampling system. This means that they let their customers taste the different flavors using the famous pink single-use spoons. That way, they can choose the right ice cream perfect for their taste palate.
The Beatle Nut
Sometimes, the best ideas can come quickly. This happened to Mr. Robbins back in the ‘60s during the Beatlemania.
The back story was that a Washington Post reporter called Baskin Robbins and asked if they already have a flavor to honor the Beatles. At that time, the famous band was about to have their first US tour. Mr. Roberts was caught off guard because he hadn’t thought of it.
Surprisingly, he was able to come up with a witty name, ‘Beatle-Nut’. It’s a pistachio ice cream with a chocolate ribbon and walnuts. The flavor was created within less than a week and was a smash hit.
Guinness World Record Holder
If you must know, Baskin-Robbins is the current record holder for creating the largest cup of ice cream. This shows how passionate and dedicated the company is to be the leading ice cream chain in the world. The cup of vanilla ice cream weighed 8,865 pounds. And by the looks of it, no other chain could top that.
Weirdest Ice Cream Flavors
The company is also known to create the oddest ice cream flavors. How about garlic and jalapeno on your favorite sweet treats? Not all restaurants can get away from that, but Baskin-Robbins certainly can.
Baskin Robbins Franchise Cost
Below is the estimated Baskin Robbins franchise cost. Please note that this could change without prior notice. As always, reach out to their franchising team to get the final details.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $12,500 | $25,000 |
| Real Estate Development | $15,000 | $211,600 |
| Equipment, Trade Fixtures and Signs | $37,035 | $230,000 |
| Restaurant Technology System | $2,050 | $11,200 |
| Licenses, Permits, Fees and Deposits | $2,000 | $5,500 |
| Opening Inventory | $5,000 | $8,000 |
| Miscellaneous Opening Costs | $9,500 | $28,000 |
| Uniforms | $400 | $800 |
| Insurance | $3,500 | $8,300 |
| Travel and Living Expenses While Training | $1,000 | $9,000 |
| Marketing Start-Up Fee | $3,000 | $5,000 |
| Additional Funds for First 3 Months of Operation | $0 | $52,500 |
| ESTIMATED TOTAL | $123,952 | $558,830 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Continuing Franchise Fee | 5.9% of gross sales. |
| Continuing Advertising Fee | 5% of total gross sales. |
| Franchise Transfer Fee (for a majority interest) | $7,500 (or $20,000 if the restaurant is a combo plus the amount listed in the FDD table). |
| Franchise Transfer Fee (for less than a majority interest or transfer to spouse or children) | Then-current Fixed Documentation Fee, currently $2,000 per restaurant plus an additional $2,000 for each new transferee. |
| Audit Costs | Franchisor’s cost to examine the franchisee’s financial, employment or business records including legal fees and investigative costs. |
| Immigration Status Review Costs | Franchisor’s out-of-pocket costs to hire attorneys or others for outside service. |
| 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 (but not more than any maximum imposed under applicable law). |
| Indemnification | Varies. |
| SDA Transfer Fee (transfer of a majority interest or more) | $10,000 |
| SDA Transfer Fee (for less than a majority interest or transfer to spouse or children) | Then-current Fixed Documentation Fee (currently $2,000 plus an additional $2,000 for each new transferee). |
| Lease Fees | Varies. |
| Fixed Document Fee – Generally | Then-current Fixed Documentation Fee (currently, $2,000 per restaurant). |
| Fixed Document Fee – Transfers | Then-Current Fixed Documentation Fee (currently $2,000 per restaurant) plus an additional $2,000 for each new transferee. |
| 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. |
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