Do you want to open a restaurant business by buying Baskin Robbins franchise? If YES, here is how much it cost to open a Baskin Robbins franchise successfully. If you are looking towards opening a Baskin Robbins Franchise, it will be nice for you to have a of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

Baskin-Robbins Franchising LLC started operations in 1946 and they began selling franchise in 1950. They have their corporate headquarters at Canton, Massachusetts and presently they have an estimated 8,070 franchise units in operation.

The franchisor is Baskin-Robbins Franchising LLC. Baskin-Robbins franchised restaurants sell Baskin-Robbins ice cream, related frozen products as well as other food items and products compatible with its concept. Here are areas where you are expected to spend money and the costs associated with it;

Financial Investment Required to Open a Baskin Robbins Franchise

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.

Please note that 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.

Please note that 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.

Please note that 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

The 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. Please note that Gross sales include all revenue related to the Restaurant.

7. Continuing Advertising Fee (CAF): 5.0% of total gross sales

The 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. Please note that 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. Please note that the 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. Please note that the 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.

Please note that 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. Please note that this cost is 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. Please note that 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. Please note that 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.

  1. SDA Transfer Fee (transfer of a majority interest or more): $10,000

Due Date:  Upon transfer.

Please note that the 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.

  1. 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.

Please note that the 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.

  1. Lease Fees: Varies

Due Date:  Payable as described in the lease.

Please note that if you lease the Restaurant from Baskin-Robbins or its affiliates.

  1. 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.

Please note that the Due if preparation of additional documents is at your request or becomes necessary.

  1. 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.

Please note that Due if preparation of additional documents is at your request or becomes necessary.

  1. 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.

Please note that you pay the cost for any additional tests/ approvals that you have requested.

  1. Costs for Tests Used to Approve Additional Supplier(s): Franchisor’s out of pocket and internal costs allocated to this activity, typically $1,000 to $10,000 depending on the complexity of the testing.

Interestingly, you can have access to financial assistance from Baskin-Robbins Franchising LLC. The franchisor facilitates certain lending arrangements through third party lenders, which may provide financing for qualified franchisees. The amount of financing and period of repayment varies by program, circumstances, and creditworthiness of the applicant.

In summary, here is the Investment Table (Estimated Initial Investment)

  • Initial Franchise Fee – $12,500 – $25,000
  • Real Estate Development – $15,000 – $211,600
  • Equipment, Trade Fixtures and Signs – $37,035 – $230,000
  • Restaurant Technology System – $2,050 – $11,200
  • Licenses, Permits, Fees and Deposits – $2,000 – $5,500
  • Opening Inventory – $5,000 – $8,000
  • Miscellaneous Opening Costs – $9,500 – $28,000
  • Uniforms – $400 – $800
  • Insurance – $3,500 – $8,300
  • Travel and Living Expenses While Training – $1,000 – $9,000
  • Marketing Start-Up Fee – $3,000 – $5,000
  • Additional Funds for First 3 Months of Operation – $0 – $52,500

ESTIMATED TOTAL – $123,952 – $558,830

Solomon. O'Chucks