Haagen-Dazs Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$15,000

-

$543,000

LOCATIONS

208

Emily

Updated

April 11, 2024

Is

Haagen-Dazs

a franchise?

Yes,
Haagen-Dazs
currently
accepts
franchise
applications

Häagen-Dazs was founded in 1960 by Reuben and Rose Mattus in the Bronx, New York  Häagen-Dazs, renowned for its super-premium ice cream, began its journey into franchising in 1976, offering entrepreneurs the opportunity to be a part of their global network. Häagen-Dazs prides itself on its commitment to quality, with a strong reputation for delivering luxurious ice cream made from the finest ingredients. 

The brand's franchising model is designed for individuals who possess an entrepreneurial spirit and have achieved success in previous ventures, especially those with operational and managerial experience in retail and food businesses, although such experience is not strictly necessary.

Headquartered in Minneapolis, Minnesota, Häagen-Dazs supports its franchisees extensively from the start of their journey and throughout the lifecycle of their business. The franchise offers a variety of shop formats to cater to different location types, including high-street shops, malls, airports, and more, ensuring versatility and the ability to attract a wide customer base. 

Each Häagen-Dazs shop offers an exclusive selection of over 24 premium flavors and a unique selection of seasonal specialties, making it a tempting choice for ice cream lovers and a rewarding opportunity for potential franchisees​​​​​​.

How many

Haagen-Dazs

franchises

are there?

In 2022, there were
208
outlets in
the United
States, of which
208
are franchises, and
0
are corporate-owned.

What are the

Haagen-Dazs

franchise

fees?

Advertising fee

$3,000 to $6,000 per year plus 1%

Initial Franchise Fee

The Initial Franchise Fee is $30,000, with $3,000 due upon signing the Franchise Agreement and the balance due when the shop premises are designated.

Royalty

The royalty is 4% of gross sales. This fee is for the continuing right to operate the shop in association with the brand's marks and system. Royalty payments are due fifteen days after the end of the period in which the gross sales were achieved.

General Marketing Contribution

The general marketing contribution starts at a base of $1,000, with an adjustment of $25 for each full 3.0 change in the U.S. Bureau of Labor Statistics Consumer Price Index, but it will not be less than $3,000 per year.

Transfer Fee

A Transfer Fee of $7,500 is charged when a franchisee initiates the transfer process, covering administrative costs and training for the transferee's designated shop manager.

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

Haagen-Dazs

franchise?

It costs between
$15,000
and
$543,000
to start a
Haagen-Dazs
franchise.
Type of Expenditure Amount
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 - $300,000
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 – Three Months $10,250 - $63,500
Total $214,518 - $542,768

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

Haagen-Dazs

provide

training

to its

franchisees?

Yes,
Haagen-Dazs
provides
training

Häagen-Dazs provides a detailed training program for franchisees, emphasizing the importance of comprehensive preparation in establishing and operating a Häagen-Dazs Shop. The training includes initial sessions for the designated shop manager and one additional person, focusing on the principal aspects of shop establishment and operation, product handling, and the preparation and sale of menu items. The specific procedures and requirements for this training are outlined in the Shop Operations Manual.

Initial Training

Before the shop's initial opening, Häagen-Dazs offers, at no charge to the franchisee, initial training for the designated shop manager and up to one additional person. This training is in line with Section 9.3.1, ensuring that the key personnel are well-prepared for their roles.

Remedial Training

Häagen-Dazs reserves the right to require remedial training aimed at addressing specific operational deficiencies. This training is an alternative to declaring a default or terminating the agreement for material breach and may involve additional costs for the franchisee.

Ongoing and Refresher Training

The designated shop manager might also need to attend mid-term training after the fifth year of the term, as determined by Häagen-Dazs. Additionally, in the case of a successive term franchise or renewal term franchise, refresher training may be required to ensure continued compliance with system standards.

Does

Haagen-Dazs

provides

territory

protection?

Häagen-Dazs does not grant an exclusive territory to franchisees. Franchisees may face competition from other franchisees, outlets owned by Häagen-Dazs, or other distribution channels and competitive brands controlled by Häagen-Dazs. 

If a protected area is granted, the Franchise Agreement will stipulate that as long as the franchisee meets their obligations under the agreement, Häagen-Dazs will not establish or license another person to establish a Häagen-Dazs Shop within that protected area.

However, this does not preclude Häagen-Dazs from selling products through other distribution channels, including grocery stores, delicatessens, convenience stores, mobile carts, restaurants, licensed retail dessert outlets, schools, and other institutional customers, both within and outside the protected territory. The majority of Häagen-Dazs products are sold through such channels, which are not restricted by the franchise agreement​​​​.

Can a

Haagen-Dazs

franchise

be run as

a passive

investment?

Häagen-Dazs franchisees are expected to be actively involved in the management of their franchises. Franchisees must always have a designated shop manager responsible for the day-to-day management and operations of the shop. This manager must have successfully completed Häagen-Dazs's training program and be responsible for overseeing the shop's operations in accordance with the franchise agreement and system standards.

Franchisees are required to operate their shops continuously and faithfully in full compliance with the system standards set by Häagen-Dazs. This includes adhering to the requirements for food storage, handling, preparation, merchandising, presentation, display, sale, and daily shop operations as described in the shop operations manual or as otherwise communicated by Häagen-Dazs.

Related Posts