Baskin-Robbins Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$307,000

-

$658,000

LOCATIONS

978

Emily

Updated

May 2, 2024

Is

Baskin-Robbins

a franchise?

Yes,
Baskin-Robbins
currently
accepts
franchise
applications

Baskin-Robbins was founded by Burt Baskin and Irv Robbins in 1945 in Glendale, California, marking the beginning of what would become the world's largest chain of ice cream specialty stores. The brand started franchising in 1950 and is now headquartered in Canton, Massachusetts, under the umbrella of Inspire Brands. Known for its iconic "31 flavors" slogan, which implies that customers can enjoy a different flavor every day of the month, Baskin-Robbins has become a staple in the ice cream industry.

Baskin-Robbins distinguishes itself from competitors through its vast variety of flavors, with more than 1,300 introduced since its inception, including innovations like vegan and non-dairy options. The brand's emphasis on variety, quality, and innovation has helped it maintain a significant presence in the ice cream sector.

For those interested in franchising, Baskin-Robbins offers a comprehensive training program that includes both virtual components and hands-on training, preparing franchisees to operate their stores effectively. The franchise provides opportunities for both traditional and non-traditional store formats, catering to a wide range of locations and customer bases. The initial investment for opening a Baskin-Robbins franchise ranges significantly, reflecting the diverse options for store types and locations.

How many

Baskin-Robbins

franchises

are there?

In 2022, there were
978
outlets in
the United
States, of which
978
are franchises, and
0
are corporate-owned.

What are the

Baskin-Robbins

franchise

fees?

Advertising fee

2.5% to 5%

Initial Franchise Fee ($25,000)

The initial franchise fee for a standard Franchise Agreement with Baskin-Robbins is $25,000. This fee is payable upon the execution of the Franchise Agreement.

Royalty Fee (5.9% of Gross Sales)

Franchisees are required to pay a continuing royalty fee of 5.9% of the Gross Sales of the Restaurant for each specified period.

Advertising Fee

  • National Advertising Fee (5% of Gross Sales): Franchisees are required to contribute 5% of Gross Sales towards the National Advertising Fee. This fee is payable monthly on or before the 10th day of the next month via EFT.
  • Local Advertising (3% of Gross Sales): Franchisees are also required to spend 3% of Gross Sales on local advertising. This fee is payable monthly.
  • Co-op Advertising (Amount not specified): Franchisees may also need to contribute towards Co-op Advertising, as approved by a majority vote of the members of the Co-op Advertising Region.

Additional Training ($1,000 per person)

This fee is for additional training necessary after the completion of the Franchisee Development Program for the franchisee or their management.

E-Learning Program ($204 per quarter or $755 annually)

Franchisees will pay for access to the E-Learning Program, which is payable quarterly.

Additional Assistance ($500 per week)

This fee is for additional or special training or assistance requested by the franchisee.

Site Review Fee ($500 per site after four site reviews)

Baskin-Robbins will review up to four sites selected by the franchisee at no charge, and may charge this site review fee for each additional site that is reviewed.

Transfer Fee ($7,500 or $20,000)

This fee is payable before the completion of the transfer when the franchise agreement is transferred or assigned.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Baskin-Robbins

franchise?

It costs between
$307,000
and
$658,000
to start a
Baskin-Robbins
franchise.

The total estimated initial investment for this endeavor ranges from $293,840 to $642,360. The table below meticulously details the various costs involved:

Type of Expenditure Amount
Initial Franchise Fee $25,000
Real Estate Development $123,000 to $267,000
Equipment, Fixtures and Signs $115,000 to $197,760
Restaurant Technology System $1,440 to $15,000
Licenses, Permits, Fees and Deposits $7,000 to $20,000
Opening Inventory $5,000 to $8,000
Miscellaneous Opening Costs $9,500 to $28,000
Uniforms $400 to $800
Insurance $3,500 to $8,300
Travel and Living Expenses While Training $1,000 to $15,000
Marketing Start-Up Fee $3,000 to $5,000
Additional Funds for First 3 Months of Operation $0 to $52,500
Totals $293,840 to $642,360

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Baskin-Robbins

provide

training

to its

franchisees?

Yes,
Baskin-Robbins
provides
training

Baskin-Robbins has a comprehensive training program to ensure that franchisees are well-prepared to operate their restaurants effectively. Here's a breakdown of the training process:

If franchisees wish to own and operate multiple restaurants, they must manage their network with a minimum number of individuals who have successfully completed the training program.

If franchisees are developing or purchasing a Combo Restaurant, they must complete the training requirements for both brands before opening the restaurant. It's essential that franchisees and their restaurant managers have literacy and fluency in the English language to satisfactorily complete the training program.

The training program, referred to as "Brand Training," is a requisite for franchisees, their management, and their franchise team members. An online training program known as "The Center" is part of the training regimen, which includes brand level communications, operational information, equipment programming, and marketing window readiness.

Does

Baskin-Robbins

provides

territory

protection?

Franchisees will be granted the right to operate one Restaurant at a specific location that is specified in the FA or its exhibits, and only at that location. They will not be granted any additional rights, any minimum territory, or other protected rights.

Furthermore, franchisees will not have any right to distribute products other than through their Restaurant, including alternative channels of distribution. Baskin-Robbins uses alternative channels of distribution for its products and trademarks and may expand its sale of products on a local, regional, national, or international basis.

Can a

Baskin-Robbins

franchise

be run as

a passive

investment?

As a new franchisee of Baskin-Robbins, especially during the first year of operation, you may expect to perform a substantial amount of manual labor. The expectation is to work a full shift in the restaurant every day, depending on the sales volume.

While your personal “on-premises” supervision is not required, your on-premises manager must be trained according to Baskin-Robbins' training requirements.

It's recommended, but not required, for your on-premises manager to have an ownership interest in your corporation, limited liability company (LLC), or partnership. This manager cannot have an interest or business relationship with any competitors of Baskin-Robbins.

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