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Earnings Claims of Top Franchises Revealed

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What You Need to Know About Baskin-Robbins’ Limited-Time Franchise Incentives and Updated Store Design

by Franchise Chatter on June 20, 2013

in Franchise News, Frozen Dessert Franchise

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I know many of our readers are interested in frozen yogurt franchises, particularly of the self-serve variety. But Baskin-Robbins recently introduced a new store design and some major franchise incentives that deserve your careful consideration.

Why Baskin-Robbins? A Few Facts and Figures

Baskin Robbins Interior

Baskin-Robbins “Supergraphic” Artwork

We all know that Baskin-Robbins specializes in hard scoop ice cream and custom ice cream cakes. But did you know that over 300 million people visit Baskin-Robbins each year to sample from the more than 1,000 flavors available in its collection, contributing to global sales of $1.9 billion in 2012?

With more than 7,000 retail shops in nearly 50 countries, and more than 13 million ice cream cakes sold last year, Baskin-Robbins is the largest chain of ice cream specialty shops in the world. It was also recognized by Entrepreneur magazine earlier this year as one of the top ice cream and frozen dessert franchises in the country (ranked third behind Dairy Queen and Cold Stone Creamery, and No. 56 overall).

To fuel further growth and better compete against a slew of frozen yogurt franchises attempting to gain market share, Baskin-Robbins has a two-fold plan consisting of aggressive franchise incentives for new and existing franchisees and military veterans; and a revitalized store design inspired by the whimsical touches typically found in fro-yo shops, but blended with the company’s own heritage features.

Baskin-Robbins Franchise Incentives

The following Baskin-Robbins franchise incentives are available for a limited-time only:

  • Baskin Robbins Interior

    Baskin-Robbins Interior

    For new franchisees:  a 10-year initial franchise fee payment plan whereby the $25,000 fee can be amortized over 10 years. In addition, qualified candidates who develop shops in a timely manner will enjoy reduced royalty rates of 0.9% to 2.9% over the first five years — a major reduction from the standard royalty fee of 5.9%.

  • For honorably discharged military veterans: U.S. military service men and women who sign a franchise agreement this year and develop shops in a timely manner will receive a waiver of the 20-year initial franchisee fee. In addition, they will enjoy a zero percent royalty rate for the first two years and a reduced royalty rate from years three through five.
  • For existing franchisees:  Baskin-Robbins franchisees who meet certain expansion qualification criteria will receive incentives for expansion, remodels, and relocation.

Baskin-Robbins’ New Store Design

Baskin-Robbins projects that more than 300 new and remodeled stores will sport the new store design within the next two and a half years. The new store design, which fuses the brand’s heritage with modern design touches, is built around five core components, including:

  • a newly designed menu board system with an LCD screen
  • eye-catching ice cream “supergraphic” artwork
  • a wall that highlights the brand’s legacy of flavors
  • an updated brand logo
  • and whimsical pink spoon accents, including spoon-shaped door handles

Baskin-Robbins’ Growth Prospects

Baskin Robbins Spoon

Baskin-Robbins Spoon

Baskin-Robbins is part of  Dunkin’ Brands Group, Inc.

We recently interviewed Grant Benson, CFE, vice president of franchising and market planning for Dunkin’ Brands, for an in-depth article on Dunkin’ Donuts.

Addressing the growth prospects of the ice cream franchise, Grant says, “Baskin-Robbins is focused on growing the brand, and this fresh, modern look is the perfect complement to the business opportunity available to prospective franchisees. Together with both new and existing franchisees, we will continue to bring to life our brand’s slogan, ‘More Flavors. More Fun’.”

Baskin-Robbins is targeting California, Florida, and Texas for expansion.

The Bottom Line

If you are considering an investment in a Baskin-Robbins shop, this package of incentives makes the opportunity a lot more tempting. A 10-year amortization of the franchise fee and a significant reduction in royalties show that the company is serious about its growth plans. The new store design should also help the franchise compete more effectively against its faster-growing frozen yogurt cousins.

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