Baskin Robbins Franchise Cost & Fees

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Description

Year Business Began: 1946Franchising Since: 1950Headquarters: Canton, MassachusettsEstimated Number of Units: 7,985Franchise Description: The franchisor is Baskin-Robbins Franchising LLC. Baskin-Robbins franchised restaurants sell Baskin-Robbins ice cream, related frozen products as well as other food items and products compatible with its concept.Training Overview: The initial training program takes a total of 15 days (not including online training). The training program consists of 5 days of Foundations Training conducted in the Dunkin Brands University (DBU) in Braintree, MA and a 5 day Dessert Operations training program conducted at the Dunkin Brands University (DBU) in Braintree, MA. The franchisor also requires a total of 5 days of Restaurant operations training in a designated training Restaurant consisting of instructor demonstrations on how to store, merchandise, serve and package products sold in a Restaurant, followed by student practice serving guests. Some required classes are only offered on the Internet and are referred to as online training. These classes will require approximately 16 hours to complete. This is in addition to the classes listed above. In addition, for franchisees’ first Restaurant, the franchisor may require them to participate for two days in the opening of another Restaurant. Franchisees must attend and require their employees to attend further training as the franchisor may from time to time require.Territory Granted: The franchisee’s right to operate a Restaurant pursuant to a Franchise Agreement is limited solely to the location set forth in the Franchise Agreement. Franchisees are not granted any minimum territory. Franchisees will not be granted an exclusive territory, and 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.Obligations and Restrictions: As a new franchisee of an individual Restaurant, the franchisee may expect to perform a substantial amount of manual labor, especially during the first year of operation. Depending on the sales volume of the Restaurant, the franchisee should expect to work a full shift in the Restaurant every day. If sales and profits are high, franchisees may not be required to do this, but they should not enter into the business unless they are willing and able to meet this requirement. The franchisee’s personal “on-premises” supervision is not required. The on-premises manager must be trained in accordance with training requirements. The on-premises manager should have an ownership interest in the franchisee’s corporation, limited liability company (LLC) or partnership but it is not a requirement. The franchisor requires the franchisee to confine his or her business to the operation of a Restaurant. Franchisees may not conduct any other business or activity at the Restaurant without prior written approval. Franchisees may only offer or sell products approved by the franchisor and must offer for sale the full menu prescribed by the franchisor. Term of Agreement and Renewal: The length of the franchise term is typically 20 years (except Baskin-Robbins APOD/Express which is typically 5 or 10 years). There is conditional renewal for additional term of 20 years if, and only if, all requirements are met.Financial Assistance: The franchisor has lending contacts through third party lender(s) which may provide financing for qualified franchisees. The amount of financing and period of repayment varies by program, circumstances, and creditworthiness of the applicant. Dunkin’ Brands has created a limited pool of funds that will be available as financing to existing, qualified Baskin-Robbins franchisees to be used solely for the development of new locations through 2018. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $12,500 $25,000 Real Estate Development $11,000 $125,000 Equipment, Trade Fixtures and Signs $32,000 $127,600 Electronic Cash Register/Retail Technology System $10,950 $13,600 Opening Inventory $5,000 $8,000 Miscellaneous Opening Costs $12,000 $27,000 Licenses, Permits, Fees and Deposits $2,000 $5,500 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 $50,000 ESTIMATED TOTALS $93,550 $401,800 Other Fees Type of Fee Amount Continuing Franchise Fee 5.9% of gross sales. Continuing Advertising Fee 5.0% of total gross sales. Franchise Transfer Fee (for a majority interest) $7,500 (or $20,000 if the restaurant is a DD/BR Multi-Brand plus the amount listed in the FDD table) Franchise Transfer Fee (for less than a majority interest) Then-Current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee. Franchise Transfer Fee (transfer to spouse or children) Then-Current Fixed Documentation Fee, which is 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. 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 or highest rate allowed by law. Indemnification Varies. SDA Transfer Fee $10,000 SDA Transfer Fee (for less than a majority interest) Then-Current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee. SDA Transfer Fee (transfer to spouse or children) Then-Current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee. Fixed Document Fee – Transfers Then-Current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee. Lease Fees Varies. Fixed Document Fee – Generally Then-Current Fixed Document Fee, which is currently $2,000 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. The above information has been compiled from the FDD of Baskin Robbins. Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Continuing Franchise Fee 5.9% of gross sales.
Continuing Advertising Fee 5.0% of total gross sales.
Franchise Transfer Fee (for a majority interest) $7,500 (or $20,000 if the restaurant is a DD/BR Multi-Brand plus the amount listed in the FDD table)
Franchise Transfer Fee (for less than a majority interest) Then-Current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee.
Franchise Transfer Fee (transfer to spouse or children) Then-Current Fixed Documentation Fee, which is 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.
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 or highest rate allowed by law.
Indemnification Varies.
SDA Transfer Fee $10,000
SDA Transfer Fee (for less than a majority interest) Then-Current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee.
SDA Transfer Fee (transfer to spouse or children) Then-Current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee.
Fixed Document Fee – Transfers Then-Current Fixed Documentation Fee, which is currently $2,000 per restaurant plus an additional $2,000 for each new transferee.
Lease Fees Varies.
Fixed Document Fee – Generally Then-Current Fixed Document Fee, which is currently $2,000
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.