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1851 Growth Club
Franchise Deep Dive: Baskin-Robbins’ Franchise Costs, Fees, Profit and Data
The largest ice cream franchise in the world offers its signature 31 flavors, but what does it offer its franchisees?
LAST UPDATED: January 23, 2023
FRANCHISE WEBSITE: https://www.baskinrobbinsfranchising.com/
NUMBER OF LOCATIONS: 7,200-plus worldwide
REPORTED COST TO GET IN: $293,840 and $636,360
REPORTED ROI (Item 19): $488,920 (total U.S. average)
Baskin-Robbins has been an American staple since the 1940s. The brand went from being a small ice cream shop in Glendale, California to the largest ice cream chain in the world known for offering its customers more than 1,400 flavors with the “31” representing a different ice cream flavor for each day of the month. Baskin-Robbins might be the largest chain in the world, but it still has some worthy competitors in brands like Cold Stone Creamery, Dairy Queen* and Ben & Jerry’s. How does the ice cream franchise giant stand out to potential franchisees in a $13 billion dollar industry?
How Many Baskin-Robbins Are There?
There are more than 7,900 Baskin-Robbins locations around the world. In the United States alone, there are over 2,400 locations in 45 states and territories. Baskin-Robbins got its start in 1945 in California. The brand became one of the first to franchise in the 1950s and has since grown to be the largest ice-cream chain in the world.
What Is the Baskin-Robbins Business Model?
The Baskin-Robbins business model allows for two categories of restaurants. Franchisees can choose which model they operate. The options are as follows:
Traditional Restaurants:
- Freestanding
- End Cap
- In-Line
Non-Traditional Restaurants:
- Airports
- Stadiums
- Colleges and Universities
- Gas Stations and Convenience Stores
Potential franchisees also have the option to purchase existing restaurants. Upon purchasing a restaurant, Baskin-Robbins franchise must complete training that includes live, in-store technical training, instructor-led classroom training, an online learning management system and a mentor program.
How Much Can Baskin-Robbins Franchise Owners Make?
Baskin-Robbins’ 2022 Franchise Disclosure Document (FDD) reflects the average sales for different types of single-branded restaurants in various regions of the United States for the period of November 1, 2020 to October 31, 2021. The numbers reflect a total of 884 restaurant locations.
- Average Restaurant Sales Based on Region
- West North: $509,197
- West South: $538,070
- Mountain West: $448,632
- East North: $412,962
- East South: $416,004
- Total U.S. Average Sales: $488,920
- Total U.S. Median Sales: $462,121
- Total U.S. Highest Sales: $2,032,305
- Total U.S. Lowest Sales: $5,740
How Much Does It Cost To Open a Baskin-Robbins?
The estimated total investment to begin the operation of a single Baskin-Robbins restaurant is between $293,840 and $636,360. The following costs are part of the upfront costs included in the initial investment:
- Initial Franchise Fee: $25,000
- Real Estate Development: $123,000–$267,000
- Equipment, Fixtures and Signs: $115,000–$197,760
- Restaurant Technology System: $1,440–$15,000
- 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–$9,000
- Marketing Start-Up Fee: $3,000–$5,000
- Additional Funds for First 3 Months of Operation: $0 to $52,500
What Is the Franchise Fee for Baskin-Robbins?
According to Baskin-Robbins’ FDD, the initial franchise fee for each restaurant opened is $25,000. However, there are options to reduce the price of the initial franchise fee. These options include:
- Military Veterans Ownership Incentive: Baskin-Robbins will offer qualified veterans up to $20,000 in credit that may be applied to certain fees and costs.
- Relocation Incentive Offer: Baskin-Robbins may offer programs for existing franchisees that relocate their existing restaurant that may include waived initial franchise fees.
Who Is the Leadership of Baskin-Robbins?
- David Hoffmann—CEO
- Jason Maceda—SVP Franchise Development at Inspire Brands
- Kate Jaspon—CFO
- Jonathan Biggs—VP, Baskin Robbins Operations and Operating System
What Helpful Articles Can I Read to Learn More About Baskin-Robbins?
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
