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Considering a Baskin-Robbins Franchise? Don’t Overlook These 19 Important Franchise Fees

Last updated on May 17, 2021 by Franchise Chatter 8 Comments
in Franchise Fees, Frozen Dessert Franchise, Ice Cream Franchise



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Updated May 17, 2021.

If you are considering a Baskin-Robbins franchise, don’t get blindsided by these 19 important franchise fees (from the initial franchise fee, to the royalty fee, to 17 other fees found in Items 5 and 6 of Baskin-Robbins’ 2021 FDD).

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

  • You must pay the initial franchise fees (“IFFs”) of $25,000 for each Baskin-Robbins Restaurant that you open.
  • Baskin-Robbins intends to offer qualified military veterans a 20-year IFF at no charge for the first Restaurant and a 20% IFF discount for each additional Restaurant on up to a total of five Baskin-Robbins and/or Dunkin’ Restaurants developed under either past or present incentive offers. These reduced fees only apply if all of the terms and conditions of the incentive are met.

2.  Reimbursement of Expenses:  varies

  • If you are developing a Restaurant and you or your architect are 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.
  • A $100 administrative fee is applied to all Baskin-Robbins subleases.

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

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  • You will be required to pay an initial online access fee of $300 per location and thereafter an annual continuing training fee (subscription fee), which is currently $300 per location.
  • Any additional individual(s) attending the Brand Training program will be required to pay $1,500 per individual for all Restaurants.

5.  Marketing Start-Up Fee:  minimum of $5,000 per new Restaurant opening, $3,000 for re-opening after a remodel, $3,500 per relocation that Baskin-Robbins approves, and $3,000 per transfer that Baskin-Robbins approves

  • In connection with the opening, remodeling, relocation, or transfer of your Restaurant, you must undertake promotional activities in the manner and to the extent 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, $3,000 for re-opening after a remodel, $3,500 per relocation that Baskin-Robbins approves, and $3,000 per transfer that Baskin-Robbins approves.

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 CAF 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 (or $20,000 if the Restaurant is a Combo)

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  • 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, or transfer to spouse or children):  then-current Fixed Documentation Fee (currently, $2,000 per Restaurant), plus an additional $2,000 for each new transferee

  • Due Date:  Upon transfer.
  • Due in the event of a transfer that does not result in a change of control, or due if you transfer any of your interest to your spouse and/or one or more children.

10.  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) a 3% or greater discrepancy is discovered; (b) information has been provided to show a possible violation of the agreement; or (c) the audit is done because you did not send Baskin-Robbins or keep required records.

11.  Immigration Status Review Costs:  Baskin-Robbins’ out-of-pocket costs to hire attorneys or others for outside advice

  • Due Date:  When and as billed to you.
  • Payable if Baskin-Robbins needs outside advice on your legal or immigration status.

12.  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 (but not more than any maximum imposed under applicable 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.

13.  Indemnification:  varies

  • Due Date:  Upon demand.
  • You must reimburse Baskin-Robbins if it is sued and/or held liable for claims related in any way to the operation, procession, or ownership of the Restaurant or the premises.

14.  SDA Transfer Fee (transfer of a majority interest or more):  $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.

15.  SDA Transfer Fee (for less than a majority interest, or transfer to spouse or children):  then-current Fixed Documentation Fee (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, or due if you transfer any of your interest to your spouse and/or one or more children.

16.  Lease Fees:  varies

  • Due Date:  Payable as described in the lease.
  • If you lease the Restaurant from Baskin-Robbins or its affiliates.

17.  Fixed Documentation Fee – Generally:  then-current Fixed Documentation Fee (currently, $2,000 per Restaurant)

  • 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.

18.  Fixed Documentation Fee – Transfers:  then-current Fixed Documentation Fee (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.

19.  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.


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Tagged as: Baskin-Robbins

Reader Interactions

Comments

  1. Ali says

    July 20, 2019 at 10:59 am

    Hi
    I am intresting for baskin robbins business and i love to have idea how much will cost me if i want to start this business.
    I am living in Sweeden and i would like to have all information how i can start shoop for baskin rubbines.
    Thanks

    Reply
    • Franchise Chatter says

      July 20, 2019 at 11:07 am

      Check out this article:

      https://www.franchisechatter.com/2016/06/19/franchise-costs-detailed-estimates-of-baskin-robbins-franchise-costs-2016-fdd/

      Reply
  2. shah says

    August 27, 2019 at 7:59 pm

    how much total investment for this franchise. please send me detail

    Reply
    • Franchise Chatter says

      August 27, 2019 at 8:02 pm

      The total initial investment can be found in a separate post:

      https://www.franchisechatter.com/2016/06/19/franchise-costs-detailed-estimates-of-baskin-robbins-franchise-costs-2016-fdd/

      Reply
  3. EHAB says

    September 18, 2019 at 11:58 am

    Hi
    I am intresting for baskin robbins business and i love to have idea how much will cost me if i want to start this business.
    I am living in Sudan and i would like to have all information how i can start shoop for baskin rubbines.
    Thanks

    Reply
    • Franchise Chatter says

      September 18, 2019 at 12:44 pm

      You can find the franchise costs in a separate post:

      https://www.franchisechatter.com/2016/06/19/franchise-costs-detailed-estimates-of-baskin-robbins-franchise-costs-2016-fdd/

      Reply
  4. DL Tayl says

    July 4, 2020 at 5:40 pm

    I’m interested in buying a Baskin-Robbins already established or a new one between Texas City, TX to Clear Lake, TX. Is there a place to see the ones coming up for sale?

    Reply
    • Franchise Chatter says

      July 4, 2020 at 5:49 pm

      I saw this page when I visited the Baskin-Robbins franchising website:

      https://www.baskinrobbinsfranchising.com/en/opportunities/buy-an-existing-shop

      When you click on the link that says “Available Shops” you will land on this page:

      http://restaurantsforsale.dunkinbrands.com/?Cntry=US&Brand=BR.html

      Reply

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