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).
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
- 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)
- 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.
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
Check out this article:
https://www.franchisechatter.com/2016/06/19/franchise-costs-detailed-estimates-of-baskin-robbins-franchise-costs-2016-fdd/
how much total investment for this franchise. please send me detail
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/
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
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/
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?
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