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

• Section I – Estimated initial investment (franchise costs) for a Baskin-Robbins franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Baskin-Robbins franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Baskin-Robbins outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the Baskin-Robbins franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of Baskin-Robbins’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• average sales by geographic region for U.S. Baskin-Robbins single brand restaurants that have been open for business to the public for at least one year during a one-year measuring period from November 1, 2020 to October 31, 2021

• average cost of goods sold and labor costs by region for U.S. Baskin-Robbins single brand restaurants for the period from October 25, 2020 to October 23, 2021

• average sales by geographic region for continental U.S. combo restaurants in freestanding and shopping center/storefront locations (separately stated) that have been open for business to the public for at least one year during a one-year measuring period from November 1, 2020 to October 31, 2021

• Section VI – Key ratios, comparables, computations, and analyses for the Baskin-Robbins franchise opportunity (exclusive content for Platinum subscribers)

Section I – Baskin-Robbins Franchise Costs

• Baskin-Robbins franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $25,000
• Real Estate Development:  $123,000 to $267,000
• Equipment, Fixtures, and Signs:  $115,000 to $197,760
• Restaurant Technology System:  $1,440 to $15,000
• Licenses, Permits, Fees, and Deposits:  $7,000 to $20,000
• Opening Inventory:  $5,000 to $8,000
• Miscellaneous Opening Costs:  $9,500 to $28,000
• Uniforms:  $400 to $800
• Insurance:  $3,500 to $8,300
• Travel and Living Expenses While Training:  $1,000 to $9,000
• Marketing Start-Up Fee:  $3,000 to $5,000
• Additional Funds for First 3 Months of Operation:  $0 to $52,500
• Total Estimated Baskin-Robbins Franchise Costs:  $293,840 to $636,360

Section II – Baskin-Robbins’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Baskin-Robbins’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $25,000
• Continuing Franchise Fee:  5.9% of gross sales
• Continuing Advertising Fee:  5.0% of gross sales

Section III – Number of Franchised and Company-Owned Baskin-Robbins Outlets

Franchised

2019

• Outlets at the Start of the Year:  993
• Outlets at the End of the Year:  949
• Net Change:  -44

2020

• Outlets at the Start of the Year:  949
• Outlets at the End of the Year:  894
• Net Change:  -55

2021

• Outlets at the Start of the Year:  894
• Outlets at the End of the Year:  1,042
• Net Change:  +148

Company-Owned

2019

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

2020

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

2021

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

Section IV – Background Information on the Baskin-Robbins Franchise

14 Things You Need to Know About the Baskin-Robbins Franchise

Launches Rebrand with New Logo and New Campaign

1.  In mid-April 2022, Baskin-Robbins announced that it was refreshing the brand with a new logo, packaging, employee uniforms, and tagline encouraging customers to “Seize the Yay.” Jerid Grandinetti, vice president of marketing and culinary for Baskin-Robbins, said, “For more than 75 years, Baskin-Robbins has been the destination for celebrating the moments that matter most. Our new look and manifesto recognize the extraordinary role ice cream has played in our customers’ lives, along with our continued commitment to innovation and creating someone’s next favorite flavor. Small moments that spark joy often get taken for granted. We’re encouraging people to pause and celebrate any moment that brings happiness with Baskin-Robbins.”

2.  To celebrate the rebrand, while paying tribute to its robust heritage, Baskin-Robbins is launching a collection of limited-edition merch – the very first line of branded merchandise for the 77-years young ice cream brand. The exclusive “yay-worthy” items will be available for a limited time, beginning April 18, 2022. The collection includes clothing and other items that will encourage “yay seizing” moments, such as bicycles and skateboards, available exclusively at ShopBaskinRobbins.com.

3.  Baskin-Robbins also released three new flavors to celebrate the rebranding effort:

• Non-Dairy Mint Chocochunk: This brand-new non-dairy flavor is a contemporary take on a well-known classic. Sweet mint meets thick chocolate chunks and a gooey fudge swirl with a melt-in-your-mouth coconut milk base – it’s sure to be your new favorite “just because” flavor.

• Ube Coconut Swirl: Ube (pronounced “oo-beh”) and coconut flavored ice creams meet vibrant, purple ube-flavored swirls, creating an authentic scoop with hints of sweet vanilla and nuttiness. Made with real ube from the Philippines, this sweet, balanced treat is perfect for ube lovers and ube newbies alike!

• Totally Unwrapped: An iconic duo of peanut butter and chocolate ice creams packed with fudge-covered pretzels, fudge and caramel covered peanuts, and an ooey-gooey salted caramel swirl. This unforgettable Flavor of the Month is an ode to a classic candy bar with a cool and creamy twist.

Partners with the Los Angeles Football Club

4.  At the end of July 2021, Baskin-Robbins announced that it is now the Official Ice Cream Partner of the Los Angeles Football Club (LAFC), as the club continues to bring an unrivaled experience to fans and supporters at Banc of California Stadium. Baskin-Robbins has been rooted in Los Angeles culture since its founding in 1945. With more than 200 stores across the region, Angelenos are as serious about Baskin-Robbins as they are about LAFC. LAFC fans will now have the opportunity to access exclusive deals and offers on Baskin-Robbins products at Banc of California Stadium.

5.  Shannon Blakely, then vice president of marketing and culinary for Baskin-Robbins, said, “Soccer has a longstanding history in the city of Los Angeles, and as a brand who began in L.A. more than 75 years ago, this collaboration with LAFC is the perfect way for us to showcase our support to the dedicated fan base and the Los Angeles community. We’re excited to collaborate with this record-breaking club and provide fans with Baskin-Robbins fun throughout the season.”

6.  The deal also includes joint promotions, co-branded retail pop-ups, player appearances, and LAFC Academy events to make being a fan of the Los Angeles Football Club even sweeter. Larry Freedman, co-president and CBO of LAFC, added, “We’re thrilled to announce Baskin-Robbins as the Official Ice Cream Partner for the Los Angeles Football Club. Baskin-Robbins has a strong and long-standing relationship with ice cream lovers throughout Los Angeles and we’re excited to welcome them to the Club.”

7.  To help celebrate and continue sprinkling Los Angeles with LAFC pride, Baskin-Robbins is offering fans multiple ways to score big before and after home games including:

• Ticket Giveaways: Baskin-Robbins will hold sweepstakes for chances to win tickets to upcoming games along with Baskin-Robbins gift cards. The first prize winner will win two tickets to an upcoming LAFC home game and a $25 BR gift card, and one grand prize winner will win two tickets to an upcoming LAFC home game plus a $200 Baskin-Robbins gift card and autographed memorabilia.

• Team Spirit Scratchers: Guests who stop by a Los Angeles area Baskin-Robbins wearing LAFC gear on game days will receive a free scratcher that unveils special discounts on scoops, shakes, sundaes, and more.

• Post-Game Discounts: Fans who attend home games where the Los Angeles Football Club scores three or more goals will also have their own opportunity to score with an exclusive buy one, get one for 50% off offer on Baskin-Robbins scoops the day after the game.

Company History

8.  Baskin-Robbins was founded in 1945 by brothers-in-law Burt Baskin and Irv Robbins in Glendale, California. Robbins had grown up in the ice cream industry and worked in his father’s ice cream parlor as a teen. Baskin began making ice cream while serving in the military during World War II. Following WWII, Baskin and Robbins opened up their own ice cream shops. Eventually, Baskin and Robbins decided to combine their ice cream ventures.

9.  Together, Baskin-Robbins was able to produce 31 different ice cream flavors, which was a novel concept at the time. Due to the high number of flavors, Baskin-Robbins was able to rotate its unique flavors, a practice that the chain still continues today. By 1948, Baskin-Robbins grew to six locations and Baskin and Robbins decided to start franchising. The first franchised Baskin-Robbins opened later that year.

10.  As the company continued to grow, it hired Carson-Roberts Advertising, who implemented several ideas that became signature features of Baskin-Robbins. Carson-Roberts recommended adoption of the number 31 as well as the pink (cherry) and brown (chocolate) polka dots and typeface. Baskin-Robbins used this color scheme for several decades before shifting to a more modern aesthetic in recent years.

11.  Baskin-Robbins remained under the ownership of its founders until they sold the company in 1967 to the United Brands Company (United Fruit). A few years later, Baskin-Robbins opened its first international stores in Japan, Saudi Arabia, South Korea, and Australia. Baskin-Robbins continued to grow and in 1971, the company was sold to J. Lyons and Co., which later merged with Allied Breweries.

12.  In 1994, Allied-Lyons merged with Pedro Domecq S.A., becoming Allied Domecq, which also owned Dunkin’ Brands (Dunkin’ Donuts). Following the merger, Dunkin’ Brands became the parent company of Baskin-Robbins. In August 2012, Dunkin’ Brands became completely independent of the private equity firms that had owned it for years.

13.  At the end of 2020, Dunkin’ Brands was acquired by Inspire Brands, which also owns Arby’s, Buffalo Wild Wings, Sonic Drive-In, Jimmy John’s, Rusty Taco, and Mister Donut. Today, Baskin-Robbins is one of the largest ice cream chains in the world. The company has locations in more than 50 countries.

Entrepreneur’s Franchise 500

14.  Baskin-Robbins ranked No. 36 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Baskin-Robbins Franchise (Item 19, 2022 FDD)

Part 1 – U.S. Baskin-Robbins Single Brand Restaurants, Average Restaurant Sales (for the Period November 1, 2020 to October 31, 2021)

• There were 889 single-branded Baskin-Robbins Restaurants (excluding Combo and Special Development Opportunity Restaurants and Baskin-Robbins Express Restaurants) operating in the Continental U.S. as of October 31, 2021, all of which franchisees owned.

• Baskin-Robbins excluded 5 of them from these financial performance representations because they first opened for business after November 1, 2020 and did not operate for the full 12 months from November 1, 2020 through October 31, 2021. Baskin-Robbins also excluded the 2 Baskin-Robbins Restaurants that closed between November 1, 2020 and October 31, 2021, both of which had operated for more than 12 months before they closed.

• The first set of tables (Parts 1 and 2) provides financial performance representations that are actual, historical results of the remaining 884 Baskin-Robbins Restaurants (exclusive of Combo and Special Development Opportunity Restaurants and Baskin-Robbins Express Restaurants) that were open for business to the public for at least one year at the end of the one-year measuring period on October 31, 2021.

• Baskin-Robbins also excluded from all of these financial performance representations the Baskin-Robbins Restaurants that qualify as Special Development Opportunities and Baskin-Robbins Express Restaurants. These Restaurants have sales and cost structures that vary widely from one location to another.

West-North

• Total Number of Restaurants in Sample:  254
• Average Sales:  $509,197

West-South

• Total Number of Restaurants in Sample:  247
• Average Sales:  $538,070

Mountain-West

• Total Number of Restaurants in Sample:  180
• Average Sales:  $448,632

East-North

• Total Number of Restaurants in Sample:  91
• Average Sales:  $412,962

East-South

• Total Number of Restaurants in Sample:  112
• Average Sales:  $461,004

Total

• Total Number of Restaurants in Sample:  884
• Average Sales:  $488,920

Part 2 – U.S. Baskin-Robbins Single Brand Restaurants, Average Cost of Goods Sold and Average Labor Cost as a Percentage of Total Sales (for the Period October 25, 2020 to October 23, 2021)

North-East

• Total Number of Restaurants in Sample:  68
• Cost of Goods Sold Average:  29.6%
• Labor Cost Average:  24.9%

South-East

• Total Number of Restaurants in Sample:  59
• Cost of Goods Sold Average:  29.9%
• Labor Cost Average:  25.1%

Mountain-West

• Total Number of Restaurants in Sample:  168
• Cost of Goods Sold Average:  28.3%
• Labor Cost Average:  24.7%

West-North

• Total Number of Restaurants in Sample:  249
• Cost of Goods Sold Average:  29.1%
• Labor Cost Average:  23.9%

West-South

• Total Number of Restaurants in Sample:  246
• Cost of Goods Sold Average:  26.8%
• Labor Cost Average:  23.0%

Total U.S.

• Total Number of Restaurants in Sample:  790
• Cost of Goods Sold Average:  28.3%
• Labor Cost Average:  24.0%

Part 3 – Continental U.S. Combo Restaurants, Average Restaurant Sales – Freestanding Type (for the Period November 1, 2020 to October 31, 2021)

• There were 1,170 Combo Restaurants (excluding Special Development Opportunity Restaurants) operating in the Continental U.S. as of October 31, 2021.

• Baskin-Robbins excluded 37 of them from these financial performance representations because they first opened for business after November 1, 2020 and did not operate for the full 12 months from November 1, 2020 through October 31, 2021. Baskin-Robbins also excluded the 2 Combo Restaurants that closed between November 1, 2020 and October 31, 2021, both of which had operated for more than 12 months before they closed.

• The second set of tables (Parts 3 and 4) provides financial performance representations that are actual, historical results of the remaining 1,133 Combo Restaurants in the Continental U.S. (excluding Special Development Opportunity Restaurants) that were open for business to the public for at least one year at the end of the one-year measuring period on October 31, 2021.

• The site types listed in the following tables are defined as follows:

• Freestanding: A Combo Restaurant, either newly constructed or an existing structure (to be retrofit), that does not share any common walls with any third party.

• Shopping Center/Storefront: A Combo Restaurant that shares a common wall (or walls) with third parties. The Restaurant could be an anchor (endcap) or inline tenant space in a strip center, or it could be a location in a high density, multiple level construction (typically urban/downtown office building setting) sharing common wall and ceiling/floor construction with any third party.

Northeast – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  70
• Average Sales:  $1,902,958
• Average Sales – Dunkin’:  $1,747,886
• Average Sales – Baskin-Robbins:  $155,072

Northeast – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  67
• Average Sales:  $1,273,874
• Average Sales – Dunkin’:  $1,130,022
• Average Sales – Baskin-Robbins:  $143,852

Midwest – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  193
• Average Sales:  $1,632,472
• Average Sales – Dunkin’:  $1,418,921
• Average Sales – Baskin-Robbins:  $214,664

Midwest – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  19
• Average Sales:  $936,420
• Average Sales – Dunkin’:  $794,277
• Average Sales – Baskin-Robbins:  $142,143

South – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  226
• Average Sales:  $1,426,781
• Average Sales – Dunkin’:  $1,282,137
• Average Sales – Baskin-Robbins:  $150,986

South – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  15
• Average Sales:  $967,904
• Average Sales – Dunkin’:  $826,780
• Average Sales – Baskin-Robbins:  $141,124

West – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  14
• Average Sales:  $1,343,256
• Average Sales – Dunkin’:  $1,101,316
• Average Sales – Baskin-Robbins:  $241,939

West – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  1
• Average Sales:  $1,057,124
• Average Sales – Dunkin’:  N/A
• Average Sales – Baskin-Robbins:  N/A

Total Continental U.S. – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  503
• Average Sales:  $1,569,647
• Average Sales – Dunkin’:  $1,394,627
• Average Sales – Baskin-Robbins:  $178,502

Total Continental U.S. – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  102
• Average Sales:  $1,163,895
• Average Sales – Dunkin’:  $1,020,169
• Average Sales – Baskin-Robbins:  $143,725

Part 4 – Continental U.S. Combo Restaurants, Average Restaurant Sales – Shopping Center/Storefront Site Type (for the Period November 1, 2020 to October 31, 2021)

Northeast – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  16
• Average Sales:  $1,668,812
• Average Sales – Dunkin’:  $1,550,750
• Average Sales – Baskin-Robbins:  $118,063

Northeast – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  232
• Average Sales:  $1,036,960
• Average Sales – Dunkin’:  $925,140
• Average Sales – Baskin-Robbins:  $111,820

Midwest – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  67
• Average Sales:  $1,379,673
• Average Sales – Dunkin’:  $1,238,354
• Average Sales – Baskin-Robbins:  $145,668

Midwest – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  45
• Average Sales:  $957,933
• Average Sales – Dunkin’:  $839,425
• Average Sales – Baskin-Robbins:  $121,202

South – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  108
• Average Sales:  $1,406,295
• Average Sales – Dunkin’:  $1,242,584
• Average Sales – Baskin-Robbins:  $163,711

South – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  43
• Average Sales:  $998,636
• Average Sales – Dunkin’:  $868,454
• Average Sales – Baskin-Robbins:  $130,182

West – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  14
• Average Sales:  $1,281,825
• Average Sales – Dunkin’:  $1,039,930
• Average Sales – Baskin-Robbins:  $260,502

West – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  3
• Average Sales:  N/A
• Average Sales – Dunkin’:  N/A
• Average Sales – Baskin-Robbins:  N/A

Total Continental U.S. – Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  205
• Average Sales:  $1,409,583
• Average Sales – Dunkin’:  $1,251,414
• Average Sales – Baskin-Robbins:  $160,518

Total Continental U.S. – Non Drive-Thru Restaurants

• Total Number of Restaurants in Sample:  323
• Average Sales:  $1,017,917
• Average Sales – Dunkin’:  $902,084
• Average Sales – Baskin-Robbins:  $116,193

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – Baskin-Robbins Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️