Baskin-Robbins operate a global network of franchised ice cream restaurants. Known for having 31 flavor options at each location, the chain also offers ice cream cakes for various occasions. The famous “31 flavors” slogan came from the idea of being able to have a different flavor on every day of the month, although these days, they have over 1,000 flavors in their ice box.
Baskin-Robbins was started in Glendale, California, in 1945. It launched its international division in the 1970’s and they now operate more than 7,800 locations in over 50 countries worldwide.
Baskin-Robbins at a glance:
If you have a net worth of $200,000, liquid assets of at least $100,000, and you can meet the start-up costs (see below), there are few restrictions to opening a Baskin-Robbins franchise. New franchisees are required to undergo a three-weeks training session. This includes technical training onsite at store locations, learning their online systems, and skill building. Training involves 40 to 50 hours on-site tuition and 80-100 classroom hours, and costs $1,500 per individual.
Baskin-Robbins do not demand that franchisees are on-premises to manage the day to day running of the restaurant, but in the early stages, you should expect to do so. As the business grows, you can appoint an on-premises manager, but they must also be trained in accordance with Baskin-Robbins training requirements.
Depending on location, size and type of your store, the size of your retail team, and many other variable cost factors, opening a new Baskins-Robbins franchise could cost from $200,000 up to $300,000.
After opening, expect to pay continuing fees and charges, including:
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $20,000 | $20,000 |
| Real estate development (build-out) | $125,000 | $250,000 |
| Equipment, fixtures, signage | $115,000 | $200,000 |
| Restaurant technology system | $1,500 | $15,000 |
| Licenses, fees, permits | $7,000 | $20,000 |
| Opening inventory | $5,000 | $8,000 |
| Marketing start-up fee | $3,000 | $8,000 |
| Miscellaneous opening costs | $10,000 | $30,000 |
According to external research, the average cost of setting up a new Baskin-Robbins franchise is $268,000, which is modest for modern-day franchises. However, the average turnover per store is $289,000 and the average profit (before taxes and depreciation) is $44,000 (15%), so it will take a few years to recoup your initial investment. Also keep in mind that many different factors, such as location, opening hours, site costs, and marketing success, will determine if your store makes money or not.
Baskin-Robbins has a closure rate of approximately 4%. How many of these locations closed because of financial failure is unknown, but on average, it takes 10 years to recover your initial start-up costs.
Baskin-Robbins is one of the most popular ice-cream franchises in Canada, and ice cream is the most popular frozen dairy product. Come rain or shine, even through the winter, people will always consume it. Baskin-Robbins is also a franchise that you can obtain without huge investment, and they operate a robust delivery and take-out system that helped franchisees during the COVID-19 pandemic. But remember the time it takes to recover your initial investment and be aware that according to recent trends, when you go to sell your B+R franchise, it will sell at a loss.
Franchisees are granted the right to operate one restaurant at a specific location that is specified in the Franchise Agreement. Franchisees do not receive any additional rights, any minimum territory, or other protected rights.
Obtaining a Baskin-Robbins franchise means passing their initial preview and qualification tests. This will cover things like your knowledge of and passion for the brand, your management and marketing skills, any food industry experience, your business track record, etc.
If you pass the qualification tests, next do your own market research. This would include an assessment of the competition in your selected operating area, and the potential for sales and growth, (calculate the likely footfall and how many sales you could make per day and how that could be expanded). If this all adds up, you should explore your franchise funding options, and make sure you meet the minimum net worth and liquidity levels.
If you’re still in the hunt after this, the next step is to complete a formal application. You can start the process at the Baskin-Robbins corporate website.
Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new ice-cream store a messy business. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across Canada. Just tell us what you need and leave the rest to us.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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