Baskin-Robbins Franchise FDD, Profits, Costs & Fees (2024)
Baskin-Robbins, a leader in the ice cream industry, was founded in 1945. Ice cream lovers Irv Robbins and Burt Baskin, based in Glendale, California, created the brand after serving in the military.
Their partnership led to the creation of a family-friendly ice cream chain. The Baskin-Robbins name came from a coin toss, favoring Burt Baskin. The company, now headquartered in Canton, MA, began franchising on May 20, 1948, marking a key moment in its growth.
Baskin-Robbins is known for innovation, offering over 1,000 flavors to cater to diverse tastes and dietary needs. Its adaptability earned it recognition as the #1 ice cream franchise by Entrepreneur Magazine in 2021.
Baskin-Robbins Franchise Stats
Baskin-Robbins
Number of units: 978 franchises
Initial investment: $307,000 - $658,000
Average revenue (AUV): $298,000
Initial Investment
How much does it cost to start a Baskin-Robbins franchise? It costs on average between $307,000 – $658,000 to start a Baskin-Robbins franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $25,000 |
| Real Estate Development | $123,000 – $267,000 |
| Equipment, Fixtures and Signs | $115,000 – $197,760 |
| Restaurant Technology System | $15,000 – $29,500 |
| Licenses, Permits, Fees and Deposits | $7,000 – $20,000 |
| 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 – $15,000 |
| Marketing Start-Up Fee | $3,000 – $6,000 |
| Additional Funds for First 3 Months of Operation | $0 – $52,500 |
| TOTAL | $307,440 – $657,860 |
Average Revenue (AUV)
How much revenue can you make with a Baskin-Robbins franchise? A Baskin-Robbins franchised restaurant makes on average $298,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $469,000 yearly revenue for similar ice cream franchises. Below are 10 Baskin-Robbins competitors as a comparison:
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Baskin-Robbins Franchise Disclosure Document
Recent Legal Disputes and Litigation
Baskin-Robbins has faced several legal disputes with its franchisees in recent years. In one significant case from February 2024, Baskin-Robbins filed a lawsuit against Blu Moo Ice Cream Inc. for continuing to operate and use Baskin-Robbins’ trademarks after the franchise agreement was terminated.
The termination occurred because Blu Moo allegedly failed to meet financial obligations. Despite repeated cease-and-desist notices, Blu Moo persisted in using Baskin-Robbins’ intellectual property, prompting the company to file for injunctive relief and seek damages for breach of contract and trademark infringement.
Another prominent legal battle took place in Central Virginia in 2023. Franchisees of several Dunkin’ Donuts and Baskin-Robbins stores were sued for defaulting on rent and franchise fees. In response, the franchisees counterclaimed, alleging that Baskin-Robbins had breached a prior settlement agreement from 2010.
The franchisees accused Baskin-Robbins of delaying store openings, which they claimed negatively impacted their profitability. This dispute highlighted ongoing tensions between franchise owners and the company, with accusations of unfair business practices on both sides.
These legal actions reflect the company’s ongoing efforts to enforce its franchise agreements and protect its intellectual property. Baskin-Robbins consistently seeks legal remedies in cases where franchisees violate agreements or misuse its brand assets.
Frequently Asked Questions
How many Baskin-Robbins locations are there?
Baskin-Robbins operates approximately 8,000 franchise locations worldwide, with around 2,550 of those in the U.S. Notably, 100% of Baskin-Robbins locations are franchised, meaning there are no company-owned stores.
This global ice cream chain has maintained its franchise-only model, allowing franchisees to own and operate all of its outlets, both domestically and internationally.
The brand’s widespread presence and franchising system are part of its strategy to expand into various markets, including co-branded locations with Dunkin’. This approach has helped it grow across 50 countries.
What is the total investment required to open a Baskin-Robbins franchise?
The total investment required to open a Baskin-Robbins franchise ranges from $307,000 to $658,000.
What are the ongoing fees for a Baskin-Robbins franchise?
For a Baskin-Robbins franchise, ongoing fees include a royalty fee of 5.9% of gross sales. This fee ensures franchisees receive continued support from the franchisor, including operational guidance and brand consistency.
Additionally, franchisees are required to pay a marketing or advertising fee of 5% of gross sales. This fee supports regional and national advertising campaigns designed to boost brand awareness and drive traffic to all Baskin-Robbins locations.
What are the financial requirements to become a Baskin-Robbins franchisee?
To become a Baskin-Robbins franchisee, you must meet he minimum net worth required is $250,000, ensuring that potential franchisees have sufficient overall financial backing.
Additionally, candidates must have at least $125,000 in liquid assets, which reflects the need for readily available funds to cover the initial investment, operational costs, and any unforeseen expenses.
These financial prerequisites help ensure that franchisees can maintain the financial stability necessary to operate a successful Baskin-Robbins franchise.
How much can a Baskin-Robbins franchise owner expect to earn?
The average gross sales for a Baskin-Robbins franchise are approximately $0.3 million per location. Assuming a 15% operating profit margin, $0.3 million yearly revenue can result in $45,000 EBITDA annually.
Who owns Baskin-Robbins?
Baskin-Robbins is owned by Inspire Brands, a major multi-brand restaurant company. Inspire Brands acquired Baskin-Robbins, along with Dunkin’ Donuts, in December 2020.
The acquisition was part of a deal valued at approximately $11.3 billion. Inspire Brands owns several other well-known restaurant chains, including Arby’s, Buffalo Wild Wings, Sonic Drive-In, and Jimmy John’s, making it one of the largest restaurant companies in the world.
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