Baskin-Robbins franchise

Hassle-free business loans to start your Baskin-Robbins franchise.

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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 business details

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:

  • Stores: 7,800+
  • Required investor net worth: $200,000
  • Required investor liquid cash: $100,000 
  • Minimum investment: $280,000*
  • Maximum investment: $650,000*

Can I start a Baskin Robbins franchise?

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 at the company’s headquarters in Braintree, Massachusetts, just outside of Boston. 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. 

How much does a Baskin-Robbins franchise cost?

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 $280,000 up to $650,000. 

After opening, expect to pay continuing fees and charges, including:

  • Royalty fee: 5.9% of gross sales
  • Advertising fee: 5% of gross sales. 
  • Franchise transfer fee: $7,500

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Estimated key costs to open a Baskin-Robbins franchise (new store):

Key Costs GuideLowHigh
Franchise fee$25,000$25,000
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

Are Baskin-Robbins franchises profitable?

According to external research, the average cost of setting up a new Baskin-Robbins franchise is $468,000, 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. 

What is the failure rate for a Baskin-Robbins franchise?​

Baskin-Robbins began 2022 with 1,042 franchised outlets in the US and ended with 1,041, a decline of 41 stores and 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. 

Why should you start a Baskin-Robbins franchise?

Baskin-Robbins is one of the most popular ice-cream franchises in the US, and ice cream is the most popular frozen dairy product in America. 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.  

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What are the franchise territory policies for Baskin-Robbins?

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.

What franchise resources does Baskin-Robbins offer?

  • Marketing support: Franchisees can leverage national and regional advertising strategies, email marketing, web development, loyalty program apps and local market campaigns.
  • Flexible store designs: Baskin-Robbins offer stores in different formats – from their traditional, single brand ice cream parlor to convenience kiosks that may appear in airports and colleges, and their larger sit-in combo stores that offer both Baskin-Robbins and Dunkin’ Donuts products.  
  • Comprehensive training: Baskin-Robbins franchisees get training on the franchisor’s business concept, customer service, hiring qualified staff and how to carry out a successful grand opening. 
  • Third-party financing: Baskin-Robbins does not provide franchise financing, nor do they guarantee these types of loan. However, you may be able to secure the funds you need from the many independent lenders who provide business loans for franchisees.
  • Site selection and construction: Baskin-Robbins offers its franchisees site selection support to identify the right store location in terms of traffic and competition. They can also help you with lease negotiation, store design and build out. 

What is the process for starting a Baskin Robbins franchise?

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.

Secure franchise funding with Swoop

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 the US. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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Article sources
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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Baskin-Robbins: https://www.baskinrobbins.com/

Profitability: https://sharpsheets.io/blog/baskin-robbins-franchise-costs-profits/

Closures: https://www.franchisechatter.com/2023/07/21/fdd-talk-baskin-robbins-franchise-costs-fees-average-revenues-and-or-profits-2023-review/

Recoup investment: https://sharpsheets.io/blog/baskin-robbins-franchise-costs-profits/

Independent funders: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

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