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

Updated July 5, 2020.

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’ 2020 FDD).

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 subscription fee (currently, $300 per location); $1,500 per additional individual(s) attending the Brand Training program

• You will be required to pay an initial online access fee of $300 per location and thereafter an annual 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 or Combo 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)

• 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.