In this exclusive Franchise Chatter 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 2024 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 2024 FDD
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Section IV – News updates on the Baskin-Robbins franchise opportunity
Section V – Presentation and analysis of Baskin-Robbins’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:
- average sales by geographic region for U.S. Baskin-Robbins single brand franchise restaurants that have been open for business to the public for at least one year during a one-year measuring period from January 1, 2023 to December 31, 2023
- average cost of goods sold and labor costs by geographic region for U.S. Baskin-Robbins single brand franchise restaurants that provided Baskin-Robbins their cost of goods sold and labor cost information for the period from January 1, 2023 to December 31, 2023
- average Baskin-Robbins sales by geographic region for continental U.S. combo franchise restaurants in freestanding and shopping center/storefront/gas & convenience locations (separately stated) that have been open for business to the public for at least one year during a one-year measuring period from January 1, 2023 to December 31, 2023
- average cost of goods sold and labor costs by geographic region for continental U.S. combo franchise restaurants that provided Baskin-Robbins their cost of goods sold and labor cost information for the period from January 1, 2023 to December 31, 2023
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 2024 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: $15,000 to $29,500
- 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 $15,000
- Marketing Start-Up Fee: $3,000 to $6,000
- Additional Funds for First 3 Months of Operation: $0 to $52,500
- Total Estimated Baskin-Robbins Franchise Costs: $307,440 to $657,860
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 2024 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
2021
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 1,042
- Net Change: +148
2022
- Outlets at the Start of the Year: 1,042
- Outlets at the End of the Year: 1,001
- Net Change: -41
2023
- Outlets at the Start of the Year: 1,001
- Outlets at the End of the Year: 978
- Net Change: -23
Company-Owned
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – News Updates on the Baskin-Robbins Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Baskin-Robbins Franchise (Item 19, 2024 FDD)
Part 1 – U.S. Baskin-Robbins Single Brand Restaurants: Average Restaurant Sales for the Period January 1, 2023 to December 31, 2023
- There were 855 single-branded franchised Baskin-Robbins Restaurants (excluding Combo, Special Development Opportunity Restaurants, and Baskin-Robbins Express Restaurants) operating in the United States as of December 31, 2023, all of which franchisees owned.
- Baskin-Robbins excluded 24 of them from these financial performance representations because they first opened for business after January 1, 2023 and did not operate for the full measuring period through December 31, 2023.
- Part 1 provides financial performance representations that are actual, historical results of the remaining 831 Baskin-Robbins Restaurants in the United States (excluding Combo, 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 measuring period on December 31, 2023.
- Part 1 reflects the average sales of these 831 Baskin-Robbins Restaurants located in various Regions from January 1, 2023 to December 31, 2023.
West-North
- Total Number of Restaurants in Sample: 238
- Average Sales: $583,781
West-South
- Total Number of Restaurants in Sample: 224
- Average Sales: $591,203
Mountain-West
- Total Number of Restaurants in Sample: 194
- Average Sales: $513,528
East-North
- Total Number of Restaurants in Sample: 76
- Average Sales: $491,102
East-South
- Total Number of Restaurants in Sample: 99
- Average Sales: $546,734
Total
- Total Number of Restaurants in Sample: 831
- Average Sales: $556,491
Part 2 – U.S. Baskin-Robbins Single Brand Restaurants: Average Cost of Goods Sold and Average Labor Cost Stated as a Percentage of Total Sales for the Period January 1, 2023 to December 31, 2023
- Baskin-Robbins asked the 831 Restaurants to report to it their costs of goods sold, labor costs, and other costs for the period from January 1, 2023 until December 31, 2023. Not all of the franchisees provided this information, in some cases because the older version of their franchise agreement did not require them to provide this information.
- Part 2 provides financial performance representations that are the actual, historical results for the 598 Baskin-Robbins Restaurants in the United States (excluding Combo, Special Development Opportunity Restaurants, and Baskin-Robbins Express Restaurants) that provided Baskin-Robbins Restaurants their cost of goods sold and labor cost information, located in various Regions, from January 1, 2023 through December 31, 2023.
West-North
- Total Number of Restaurants in Sample: 188
- Average Cost of Goods Sold: 31.4%
- Average Labor Cost: 23.9%
West-South
- Total Number of Restaurants in Sample: 191
- Average Cost of Goods Sold: 29.0%
- Average Labor Cost: 23.7%
Mountain-West
- Total Number of Restaurants in Sample: 132
- Average Cost of Goods Sold: 31.0%
- Average Labor Cost: 24.3%
East-North
- Total Number of Restaurants in Sample: 46
- Average Cost of Goods Sold: 32.7%
- Average Labor Cost: 23.5%
East-South
- Total Number of Restaurants in Sample: 41
- Average Cost of Goods Sold: 32.9%
- Average Labor Cost: 25.0%
Total U.S.
- Total Number of Restaurants in Sample: 598
- Average Cost of Goods Sold: 30.7%
- Average Labor Cost: 24.0%
Part 3 – Continental U.S. Combo Franchise Restaurants: Average Restaurant Sales – Freestanding Type for the Period January 1, 2023 to December 31, 2023
- There were 1,229 franchised Combo Restaurants (excluding Special Development Opportunity Restaurants) operating in the Continental U.S. as of December 31, 2023, all operated by franchisees.
- Baskin-Robbins excluded 33 of them from these financial performance representations because they first opened for business after January 1, 2023 and did not operate for the full 12 months from January 1, 2023 through December 31, 2023.
- Baskin-Robbins also excluded the 9 Combo Restaurants that closed between January 1, 2023 and December 31, 2023, all of which had operated for more than 12 months before they closed. There were no Combo Restaurants that Baskin-Robbins or its affiliates operated as of December 31, 2023.
- Baskin-Robbins also excluded from these financial performance representations the Combo Restaurants located in Alaska or Hawaii, although as of December 31, 2023 there were no Combo Restaurants located in Alaska or Hawaii. Baskin-Robbins does not believe that the results of Combo Restaurants in Alaska or Hawaii have a reasonable basis for prospective franchisees developing Combo Restaurants in the Continental U.S. Similarly, Baskin-Robbins does not make any financial performance representation for a prospective franchisee developing a Combo Restaurant in Alaska or Hawaii.
- Parts 3 and 4 provide financial performance representations that are actual, historical results of the remaining 1,196 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 December 31, 2023.
- Parts 3 and 4 of the financial performance representations reflect the average sales for different types of franchised Combo Restaurants in various Regions of the Continental U.S. from January 1, 2023 through December 31, 2023.
Northeast – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 70
- Average Sales: $174,897
Northeast – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 63
- Average Sales: $162,422
Midwest – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 218
- Average Sales: $209,763
Midwest – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 15
- Average Sales: $148,498
South – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 240
- Average Sales: $162,773
South – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 14
- Average Sales: $142,034
West – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 14
- Average Sales: $226,187
West – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 1
- Average Sales: N/A
Total Continental U.S. – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 542
- Average Sales: $184,779
Total Continental U.S. – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 93
- Average Sales: $157,338
Part 4 – Continental U.S. Combo Franchise Restaurants: Average Restaurant Sales – Shopping Center/Storefront Site Type/Gas & Convenience (for the Period January 1, 2023 to December 31, 2023)
Northeast – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 15
- Average Sales: $141,279
Northeast – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 230
- Average Sales: $125,884
Midwest – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 80
- Average Sales: $140,649
Midwest – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 45
- Average Sales: $138,609
South – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 127
- Average Sales: $170,792
South – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 45
- Average Sales: $136,305
West – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 17
- Average Sales: $242,692
West – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 2
- Average Sales: N/A
Total Continental U.S. – Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 239
- Average Sales: $163,964
Total Continental U.S. – Non Drive-Thru Restaurants
- Total Number of Restaurants in Sample: 322
- Average Sales: $130,370
Part 5 – Continental U.S. Combo Franchise Restaurants: Average Cost of Goods Sold and Average Labor Cost Stated as a Percentage of Total Sales for the Period January 1, 2023 to December 31, 2023
- Baskin-Robbins asked the 1,196 Combo Restaurants to report to it their costs of goods sold, labor costs, and other costs for the period from January 1, 2023 until December 31, 2023. Not all of the franchisees have provided this information.
- This Part 5 provides financial performance representations that are the actual historical results for the 1,170 franchised Combo Restaurants that provided Baskin-Robbins their cost of goods sold and labor cost information, located in various Regions, from January 1, 2023 through December 31, 2023.
Northeast
- Total Number of Restaurants in Sample: 375
- Average Cost of Goods Sold: 26.6%
- Average Labor Cost: 25.5%
Midwest
- Total Number of Restaurants in Sample: 353
- Average Cost of Goods Sold: 28.8%
- Average Labor Cost: 25.8%
South
- Total Number of Restaurants in Sample: 409
- Average Cost of Goods Sold: 30.1%
- Average Labor Cost: 23.5%
West
- Total Number of Restaurants in Sample: 33
- Average Cost of Goods Sold: 31.1%
- Average Labor Cost: 28.0%
Total Continental U.S.
- Total Number of Restaurants in Sample: 1,170
- Average Cost of Goods Sold: 28.6%
- Average Labor Cost: 25.0%
- 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) ⬇️
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