Considering a Baskin-Robbins Franchise? Don’t Overlook These 21 Important Franchise Fees

Updated June 25, 2018.

If you are considering a Baskin-Robbins franchise, don’t get blindsided by these 21 important franchise fees (from the initial franchise fee, to the royalty fee, to 19 other fees found in Items 5 and 6 of Baskin-Robbins’ 2018 FDD).

1.  Initial Franchise Fee (20-year term):  $25,000

• You must pay an initial franchise fee (“IFF”) of $25,000 for each Baskin-Robbins Restaurant that you open.

• Baskin-Robbins intends to offer qualified military veterans a 20% IFF discount on up to a total of five Baskin-Robbins and/or Dunkin’ Donuts restaurants developed under either past or present incentive offers.

• For a limited time, Baskin-Robbins may elect to waive the entire IFF for the first Restaurant instead of offering the 20% IFF discount for such Restaurant.

• These reduced fees only apply if all of the terms and conditions of the Military Veterans Development Incentive are met.

2.  Reimbursement of Expenses:  varies

• If you are developing a Restaurant and you or your architect is not prepared for a scheduled meeting when required, you must reimburse Baskin-Robbins for certain out-of-pocket costs.

3.  Real Estate Lease-Related Charges:  varies

• A security deposit or other charges payable under your real estate lease or sublease may be required before the business opens.

• If you sublease from Baskin-Robbins, the security deposit is refundable at the end of the sublease term if, after Baskin-Robbins receives a final accounting from the landlord under the Prime Lease, you have no outstanding financial obligations to Baskin-Robbins under either your franchise or lease agreements.

4.  Training Related Fees Paid to Baskin-Robbins:  initial online access fee of $300 per location and thereafter an annual subscription fee, which is currently $300 per location; $1,500 per additional person(s) attending the Franchisee Training program

• You will be required to pay an initial non-refundable online access fee of $300 per location and thereafter an annual subscription fee, which is currently $300 per location for Baskin-Robbins single brand Restaurants.

• Any additional person(s) attending the Franchisee Training program will be required to pay $1,500 per person for all Baskin-Robbins Restaurants.

5.  Marketing Start-Up Fee:  minimum of $5,000 per new Restaurant opening

• In connection with the opening, remodeling, transferring, or relocating of your Restaurant, you must pay a non-refundable Marketing Start-Up Fee for a start-up promotional program that Baskin-Robbins prescribes in accordance with its brand standards, which it will provide to you.

• The minimum required Marketing Start-Up Fee is currently $5,000 per new Restaurant opening.

6.  Continuing Franchise Fee (“CFF”):  5.9% of gross sales

• Due Date:  Due on or before Thursday of each week, for the seven day sales reporting period ending at the close of business on Saturday, twelve days previous.

• Gross sales include all revenue related to the Restaurant.

7.  Continuing Advertising Fee (“CAF”):  5.0% of total gross sales

• Due Date:  Due on or before Thursday of each week, for the seven day sales reporting period ending at the close of business on Saturday, twelve days previous.

• Additional fees may be due if agreed to by 2/3rds of the Restaurants (regional or national)

8.  Franchise Transfer Fee (for a majority interest):  $7,500

• Due Date:  Upon transfer.

• Due if you transfer 50% or more interest in the franchise.

9.  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

• Due Date:  Upon transfer.

• Due if you transfer less than a 50% interest in the franchise.

10.  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

• Due Date:  Upon transfer.

• Due if you transfer all of your interest to your spouse and/or one or more children.

11.  Audit Costs:  Baskin-Robbins’ cost to examine your financial, employment, or business records, including legal fees and investigative costs

• Due Date:  When and as billed to you.

• Baskin-Robbins reserves the right to collect its costs to audit your Restaurant if a 3% or greater discrepancy is discovered, if information has been provided to show a possible violation of the agreement, or if the audit is done because you did not send Baskin-Robbins or keep required records.

12.  Immigration Status Review Costs:  Baskin-Robbins’ out-of-pocket costs to hire attorneys or others

• Due Date:  When and as billed to you.

• Payable if Baskin-Robbins needs outside advice on your legal or immigration status.

13.  Interests, 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

• Due Date:  When and as billed to you.

• Baskin-Robbins can change these fees without notice.

• They apply if you fail to pay Baskin-Robbins or if your check is dishonored or your EFT is rejected by your bank.

14.  Indemnification:  varies

• Due Date:  Upon demand.

• You must reimburse Baskin-Robbins if it is sued and/or held liable for claims arising out of your Restaurant’s operations.

15.  SDA Transfer Fee:  $10,000

• Due Date:  Upon transfer.

• Due if you transfer 50% or more of your direct or indirect interest in the SDA; partial transfers of development obligations and associated rights are not permitted.

16.  SDA Transfer Fee (for less than a majority interest):  then-current Fixed Documentation Fee, which is currently $2,000, plus an additional $2,000 for each new transferee

• Due Date:  Upon transfer.

• Due if you transfer less than a 50% interest in the SDA or SDA entity.

17.  SDA Transfer Fee (transfer to spouse or children):  then-current Fixed Documentation Fee, which is currently $2,000, plus an additional $2,000 for each new transferee

• Due Date:  Upon transfer.

• Due if you transfer all of your interest to your spouse and/or one or more children.

18.  Lease Fees:  payable as described in the lease

• If you lease the Restaurant from Baskin-Robbins.

19.  Fixed Documentation Fee – Generally:  then-current Fixed Documentation Fee, which is currently $2,000

• Due Date:  Due when you request additional documents, or when requested by Baskin-Robbins.

• Due if preparation of additional documents is at your request or becomes necessary.

20.  Fixed Documentation Fee – Transfers:  then-current Fixed Documentation Fee, which is currently $2,000 per restaurant, plus an additional $2,000 for each new transferee

• Due Date:  Due when additional documents required in connection with transfers, or when requested by Baskin-Robbins.

• Due if preparation of additional documents is at your request or becomes necessary.

21.  Costs for Tests Used to Approve Additional Supplier(s):  Baskin-Robbins’ out-of-pocket and internal costs allocated to this activity, typically $1,000 to $10,000, depending on the complexity of the testing

• Due Date:  When and as billed to you.

• You pay the cost for any additional tests/approvals that you have requested.