Do you want to open an ice cream business by buying Haagen Dazs franchise? If YES, here is how much it cost to open a Haagen Dazs franchise successfully. Founded in 1961, Haagen Dazs is recognised worldwide for making luxury ice cream with the creamiest texture and most indulgent flavours.

It was established by Reuben Mattus who had experimented with creating ice cream since childhood; Haagen Dazs began as a small business with just three simple flavours – chocolate, vanilla and coffee – each made with the highest quality ingredients available.

Note that the first retail store opened in Brooklyn in 1976, and while other brands cut corners and pumped their ice cream full of air, Haagen Dazs refused to follow the trend, instead making its products even creamier.

With time, Haagen Dazs became recognised as a premium alternative to the more basic ice cream offerings available, and continues to take pride in the careful selection of ingredients and perfection of its recipes to this day – the strawberry ice cream recipe took six long years to perfect.

Currently selling 46 luxurious ice cream flavours, each created using natural flavourings with no artificial colours or preservatives, Haagen Dazs ice cream is available to buy in supermarkets around the world. Ice cream lovers can also satisfy their cravings with a visit to a Haagen Dazs store, which also provides a range of irresistible sundaes, cookie sandwiches, sorbets, milkshakes, smoothies and frappes.

A Haagen Dazs franchise normally consists of a shop situated in a high street or shopping centre which offers the entire range of Haagen Dazs dessert products. The main store can sometimes be a combination of a satellite kiosk located in the same area to provide additional sales.

Haagen Dazs franchise owners are offered plenty of support prior to the launch of their new store. Have it in mind that the franchise development team follow a step by step process to get new shops up and running, and the operational team offer advice and assistance with the day to day running of the store, including inventory, recruitment, product cost analysis and business planning.

Immediately a suitable location for the new Haagen Dazs franchise is sited, Haagen Dazs head office offer support with store construction and design, offering access to their experienced architect to ensure that design requirements are met.

The company also finalise the building plans before their construction manager begins work with the builders, overseeing the project throughout the construction process.

Immediately the store is in place, extensive training is offered and online tools are introduced via the Haagen Dazs franchisees app, which allows new business owners to monitor inventory and schedule employees as well as provide access to recipe information and online training modules.

Within the first four days of operation, Haagen Dazs franchisees are provided with a mentor who spends eight hours a day in store to oversee the launch and answer any questions and prepare the store for success.

Financial Requirements of Opening a Haagen Dazs Franchise

According to the company’s FDD, here are fees to expect when looking to buy into the Haagen Dazs franchise.

1. Initial Franchise Fee: $15,000 to $30,000

  • Before you open for business, you are expected to pay Häagen-Dazs an “Initial Franchise Fee.” This Initial Franchise Fee tends to vary from $15,000 to $30,000, depending upon whether you are new to the Häagen-Dazs System. The Initial Franchise Fee described above applies to a franchise for a new Häagen-Dazs Shop.
  • The Initial Franchise Fee for a new Shop is $30,000 if you are a new franchisee. You are expected to pay an initial instalment, in the amount of $3,000, at the same time that you sign the Franchise Agreement.
  • Note that you are expected to pay the balance of the Franchise Fee within 15 days after Häagen-Dazs designates the Shop Premises.
  • The franchise term will be 10 years from the date you open your Shop, unless you are unable to open your Shop within 2 years, in which case, among other possibilities, the term of your Franchise can be less than 10 years.
  • As more particularly described in Item 11, Häagen-Dazs has the option to refund all but $3,000 of the Initial Franchise Fee, if it declines to designate the Proposed Site as the Shop Premises, or if you elect to cancel the Franchise Agreement before it designates the Shop Premises.
  • Also note that the Initial Franchise Fee for a new Häagen-Dazs Shop is uniform as to all franchisees, except that existing Häagen-Dazs Shop franchisees can purchase a franchise for a new Shop for $15,000, instead of the $30,000 paid by someone entering the Häagen-Dazs System.
  • Häagen-Dazs also participates in the International Franchise Association VetFran program. If you are a qualified United States armed forces veteran, you are eligible for a 25% discount on the Initial Franchise Fee for your first Häagen-Dazs Shop, which represents a savings of $7,500. The discount will be applied to your Initial Franchise Fee.

2. Häagen-Dazs Brand Frozen Dessert Products:  $1,500 to $5,000

  • You are expected to acquire Häagen-Dazs brand frozen dessert products from Häagen-Dazs’ affiliate, NDIC. Häagen-Dazs estimates that your opening inventory of Häagen-Dazs brand frozen dessert products will cost approximately $1,500 to $5,000.

3. Application Expenses:  These include the expenses you incur in connection with the interview, including all of your travel, lodging, food, and other expenses.

  • If it is your first Häagen-Dazs Franchise, then you are expected to come to Minneapolis for an interview as part of the application process. You will pay all of the expenses you incur in connection with the interview, including all of your travel, lodging, food, and other expenses.
  • Note that Häagen-Dazs will not reimburse you for any expenses under any circumstances.

4. Continuing Royalty Fee:  4% of Gross Sales

  • Due Date: Payable weekly (or less frequently as determined by Häagen-Dazs).
  • Remember the Franchise Agreement defines gross sales to include anything you sell from your Shop, even if sold in violation of your Franchise Agreement.

5. General Marketing Contribution:  $5,280 per year for a Shop (at this time); $2,550 per year for a Satellite (at this time)

  • Due Date: Payable monthly.
  • The General Marketing Contribution is $5,280 per year as of the date of the 2017 Franchise Disclosure Document, and is subject to further annual increases in accordance with a formula in the Franchise Agreement tied to the Consumer Price Index.
  • Häagen-Dazs reserves the right to delay periodic increases. Depending on the formula in the Franchise Agreement, Häagen-Dazs could have increased the rate to as much as $5,550 for 2018, and $5,625 for 2019. Effective May 1, 2019, the General Marketing Contribution will increase to $5,520 for a Shop and $2,760 for a Satellite.

6. Local Marketing Contribution:  1% of Gross Sales

  • Due Date: Payable weekly (or less frequently as determined by Häagen-Dazs).
  • Note that your Local Marketing Contribution will equal 1% of your gross sales. The Local Marketing Fund your Local Marketing Contributions establishes will be used by Häagen-Dazs for Local Marketing Activities that it thinks will be of some benefit to your Shop, or will be made available to you on a reimbursement basis for Local Marketing Activities approved by Häagen-Dazs and undertaken by you.
  • Once Häagen-Dazs chooses to make the Local Marketing Funds available to you on a reimbursement basis, but you do not become entitled to a portion of those Local Marketing Funds within the time periods that Häagen-Dazs occasionally establishes, then the portion to which you do not become entitled will be used by Häagen-Dazs in the same manner as your General Marketing Contribution.
  • If you are acquiring a Satellite Agreement, then the amount you will pay will be based on the percentage, if any, that the Franchise Agreement for your related Shop requires you to pay.

7. Transfer Fee:  $7,500

  • Due Date: This fee is payable when written documentation of the proposed transfer is sent to Shoppe Company.
  • Häagen-Dazs may temporarily reduce and reinstate this fee, occasionally at its discretion, in accordance with special transfer policies it implements.

8. Inspection Fees:  $100 per hour, plus actual expenses

  • Due Date: When incurred.
  • Once an inspection of your Shop discloses violations of applicable System standards previously noted in an earlier Shop inspection, then Häagen-Dazs may require you to reimburse it for the cost of the second inspection at the rate of $100 per hour plus expenses.

9. Audit Fees:  This is the cost of audit, including legal fees

  • Due Date: When incurred.
  • Once you submit materially inaccurate financial information in connection with the payment of royalties or marketing contributions, or do not permit inspection of your books and records.

10. Alternative Supplier Review Fee:  These are all reasonable expenses incurred

  • Due Date: When incurred.
  • In some limited circumstances, you may seek approval of alternative sources of supply for certain items.

11. Remedial Training Fee:  These are all reasonable expenses incurred

  • Due Date: When incurred.
  • In lieu of declaring a breach, Häagen-Dazs reserves the right to require you to attend a remedial training session to address operational deficiencies.

12. Remedial Costs and Administrative Fee:  These are all the expenses incurred to correct non-conforming condition, plus 15% of the costs Häagen-Dazs incurs

  • Due Date: When incurred.
  • Häagen-Dazs reserves the right to correct or arrange for the correction of operational deficiencies that you have failed to correct, in which case you are expected to reimburse it for the costs it incurs, plus pay it an administrative fee equal to 15% of the costs it incurs.

13. Late Payment Charge:  10% of late payment; interest at up to 18% per year

  • Due Date: Upon failure to timely pay amounts owed.
  • Häagen-Dazs reserves the right to impose late payment charges and interest on late payments.

14. Renewal Fee:  50% of then-current franchise fee being charged to existing franchisees for a new, traditional Häagen-Dazs Shop

  • Due Date: In connection with entering into a successive term Franchise Agreement.
  • Once you enter into a Franchise Agreement in connection with a new Häagen-Dazs Shop, then, when that Franchise Agreement expires, if you meet the applicable requirements, you will be able to enter into a successive term Franchise Agreement to continue to operate your Shop beyond the expiration date of the Franchise Agreement you are now entering into.

How to Open a Haagen Dazs Franchise in the United States

Häagen Dazs is a worldwide ice cream franchise selling high quality ice cream and desserts. With 50 years experience, an exceptional product and a well-known brand, Häagen Dazs has all the ingredients for a successful franchise. Here are five steps to get your Haagen Dazs franchise up and running.

i. Reach Out to the Franchisor

You will want to get to know Haagen Dazs better, and the company will also want to know you better. Not everyone is the perfect candidate for a Haagen Dazs Franchise, so these initial conversations are important. During this time, you will also fill out a full application for pre-qualification. The company will carefully review your application, and from there the company will determine if they should proceed with the process.

ii. Request the FDD

After all the initial discussion, you can request the franchise disclosure document (FDD). This legal document breaks down the franchise opportunity and your role as a Haagen Dazs franchisee. After you must have read this document thoroughly and decide to proceed with the process, you will learn more about the company and actually meet the team behind Haagen Dazs.

iii. Get to Meet the Team

Once you have read the FDD, it’s time to put some names to faces. The company will have one-on-one meetings with you and encourage you to reach out to current franchisees to get their advice on how to run a Haagen Dazs franchise. You will also have the option to fly to the company’s headquarters and meet the team. Once you learn everything there is to know about the brand, you can sign the franchise agreement and become Haagen Dazs newest franchise owner.

iv. Secure Your Location

Have it in mind there are many potential locations for a Haagen Dazs franchise. You can decide to set up shop in a traditional location like a mall, or something non-traditional like an airport, military base, or theme park. Check out the available territories near you to help determine what location would be the best fit.

v. Attend the Training

After you must have signed the franchise agreement and settled on a location, the company doesn’t just send you on your way without any assistance. First, they teach you how to start a Häagen Dazs franchise and run it successfully. From there, the company ensures you know the ins and outs of your new franchise and all the operations.

Conclusion

Haagen Dazs is a globally recognised and well established brand with a reputation for quality. Coupled with strong brand recognition, Haagen Dazs franchisees benefit from support, training and expert advice from a business with a proven franchise model that has been running successfully for over 30 years.

Solomon. O'Chucks