In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Häagen-Dazs franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Häagen-Dazs franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Häagen-Dazs franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned Häagen-Dazs outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Häagen-Dazs’ financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2019 average, median, lowest, and highest sales for the 164 traditional Häagen-Dazs Shops that: (1) were in operation during all of the 2019 calendar year; and (2) with respect to which the franchisor received sales information for all of the 2019 calendar year

• number and percentage of traditional Häagen-Dazs Shops in the sample that generated 2019 sales of over $1 million; from $900,001 to $1 million; from $800,001 to $900,000; from $700,001 to $800,000; from $600,001 to $700,000; from $500,001 to $600,000; from $400,001 to $500,000; from $300,001 to $400,000; from $200,001 to $300,000; and less than $200,000, respectively

Section I – Background Information

14 Things You Need to Know About the Häagen-Dazs Shops Franchise

Celebrates Expansion to Arizona with Five New Locations Amid Major Franchise Growth Efforts

1.  At the beginning of December 2019, Häagen-Dazs Shops announced that it was opening its doors to Arizona residents with grand opening festivities at five new shops in the Phoenix area. The new look and feel of its retail stores are now within reach of Häagen-Dazs fans in Old Scottsdale, Tempe (Arizona Mills Mall), Gilbert (San Tan Village), Glendale (Arrowhead Towne Center), and Chandler (Chandler Fashion Center). These shops offer a full, immersive brand experience for all consumers to enjoy the best ice cream and sorbet in Arizona, a rising market for the brand.

2.  After already opening 28 shops in 2019, Häagen-Dazs Shops is carrying that momentum through the expansion into Arizona. To enter the “Grand Canyon State”, Häagen-Dazs Shops partnered with Magnet Partners, a franchisee group led by experienced restaurant operators.

3.  Arizona is a vibrant and exciting state where Häagen-Dazs sees huge growth potential. The great year-round weather and loyal customer base make Arizona a perfect target for the brand’s growth. “Magnet Partners has found an iconic and beloved brand with an amazing opportunity with Häagen-Dazs in the region.” said Luciano Almada, one of the partners at Magnet.

4.  Over the next seven years, Magnet Partners is set to open a total of 50 Häagen-Dazs locations, expanding to all the major markets of Arizona and Texas, where they hold exclusive development rights, as well as in Florida where Magnet Partners already operates 6 Häagen-Dazs Shops.

5.  Rob Schell, director of development for The Häagen-Dazs Shoppe Company, Inc., said, “With a brand like Häagen-Dazs, growth is always top of mind.” Adam Hanson, president of The Häagen-Dazs Shoppe Company, Inc., added that “Magnet Partners was searching for a high-quality brand that offered the opportunity for rapid expansion; and we are excited to grow in the region with them.”

6.  Each of the 5 new Arizona locations will feature the full Häagen-Dazs Shops menu offerings, including its popular “Dazzler” Sundaes and the seasonal favorite Peppermint Bark flavor. The indulgent holiday classic is uniquely extraordinary with rich, white chocolate ice cream, crispy dark chocolate, and holiday-perfect peppermint candy.

7.  All five Häagen-Dazs locations held grand opening festivities on Saturday, December 14, from 11 a.m. to 9 p.m., with free scoops for the first 500 guests and other surprise rewards, including scratch-off cards with the chance to win free ice cream for a year ($500 value).

Celebrates 60th Anniversary

8.  In June 2020, Häagen-Dazs celebrated its 60th birthday by thanking fans for their support over the past six decades. Summer-long celebrations included special edition packaging on some classic flavors available at retail, featuring a Snapchat AR experience which links to an Instant Win + Sweepstakes site, as well as the limited release of Birthday Cake ice cream served exclusively at Häagen-Dazs Shops.

9.  Häagen-Dazs dressed up its most iconic flavors in special edition 60th Birthday packaging. Each carton features a Snapcode that consumers can scan using the Snapchat app to enter a virtual, life-sized ice cream container, bringing an interactive and engaging ice cream experience to life. Consumers can then click a link that will take them to an entry form for a chance to win daily birthday prizes including wireless headphones, smart watches, subscriptions to streaming services, gift cards, grocery delivery, free ice cream, and more.

10.  Fans could also look forward to special edition packaging of Vanilla, Coffee, Chocolate, Strawberry (14 oz.), and Vanilla Milk Chocolate Almond Bars (3 ct.) available at retailers nationwide for a limited time.

11.  Starting on June 1, guests could join in the celebration with the Häagen-Dazs Shops’ exclusive Birthday Cake ice cream available in a cup, cone, take home pint, or premium Birthday Cake Dazzler Sundae. The brand-new, limited-edition flavor combines vanilla cake batter ice cream, classic yellow cake pieces with a chocolaty brownie batter frosting swirl, and rainbow birthday sprinkles. The limited-edition flavor was available at all Häagen-Dazs Shops locations.

Company History

12.  Häagen-Dazs ice cream was founded in 1961 by Reuben Mattus in the Bronx, New York. The Mattus family had already been in the frozen treats business for several decades and by the late 1950s, a price war from the large mass producers of ice cream caused the family’s company to flounder. Mattus decided to start a brand new ice cream company and chose a foreign sounding name to help his ice cream stand out from the competition.

13.  Häagen-Dazs became a popular ice cream brand and in 1976, Doris Hurley – Reuben Mattus’ daughter – opened the first Häagen-Dazs shop in Brooklyn Heights, New York. Since Häagen-Dazs was already a household name, the first shop was a success and Hurley began franchising in 1977. Today, Häagen-Dazs has shops in over 50 countries around the world.

Entrepreneur’s Franchise 500

14.  Häagen-Dazs Shops ranked No. 397 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Häagen-Dazs franchise costs, based on Item 7 of the company’s 2020 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Häagen-Dazs’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  205
• Outlets at the End of the Year:  209
• Net Change:  +4

2018

• Outlets at the Start of the Year:  209
• Outlets at the End of the Year:  211
• Net Change:  +2

2019

• Outlets at the Start of the Year:  211
• Outlets at the End of the Year:  223
• Net Change:  +12

Company-Owned

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

• The data below reflects historical top-line sales information, based on the performance of a subset of Häagen-Dazs Shops during the 2019 calendar year.

• The franchisor did not operate any corporate Häagen-Dazs Shops during 2019.

• The subset of Shops used to compile this information consists of traditional Häagen-Dazs Shops that: (1) were in operation during all of the 2019 calendar year; and (2) with respect to which the franchisor received sales information for all of the 2019 calendar year.

• For most Shops, the franchisor received sales information from the Shops’ point-of-sale cash register system. If the franchisor did not receive the sales information from a Shop’s point-of-sale cash register system, then it relied on sales data the franchisee reported to it, and which it did not independently verify.

• The franchisor did not exclude Shops that were temporarily closed during the 2019 calendar year for remodeling.

• There were 223 Shops in operation at the end of 2019. The data below excludes any Shop that ceased operating during 2019.

• The data below excludes sales data for 59 of those 223 Shops, consisting of:

• (1) any traditional Shop for which the franchisor does not have sales data for all of 2019 (including any new Shop that commenced operations during 2019, seasonal Shops, and other Shops that did not operate throughout the entire year);

• (2) any traditional Shop which is operated on a management leveraged basis (where the Shop and one or more other businesses are under common ownership; and share significant operational elements, such as a common customer area, service counter, or back-of-house operational area); and

• (3) any Shop operating under a Häagen-Dazs Select Agreement, or a Häagen-Dazs Hospitality Agreement.

• In some cases, sales data includes catering and other off-site sales of a nature that the franchisor may or may not permit as part of the franchise for the Shop you might develop.