Baskin Robbins is an ice cream brand that’s been serving up nostalgia since 1945. They’re considered one of the most recognized in the ice cream shop brands more than 7,000 locations around the world. They boast of having over a 1,400 flavors in its library of ice cream along with other frozen delights such as cakes, pies, brownies, and more.
How much does it cost to open Baskin Robbins? You’ll need a liquid capital of $100,000 and a net worth of $200,000 to qualify. The average investment range to start a Baskin Robbins franchise is $293,840 to $626,360 and the franchise fee is $25,000.
But is Baskin Robbins still a worthwhile business opportunity? After all, there are countless ice cream shop and frozen yogurt concepts that have popped up in recent years to compete for dessert market share. I’m giving you the inside scoop surrounding the pros and cons of this ice cream franchise here. You can also take our 7-minute franchise quiz to be matched with an opportunity that matches your interests and budget.
- Financial Requirements and Fees
- Average Sales / Revenue per Year
- Baskin Robbins Franchise Facts
- How Much Does Baskin Robbins Make in Profit?
- Advantages of a Baskin Robbins Franchise
- Challenges of a Baskin Robbins Franchise
- Is the Baskin Robbins Franchise Right For You?
Financial Requirements and Fees
|Fees / Expenses||Financial Amount|
|Total Investment||$293,840 to $626,360|
Other costs that you should know about when you franchise Baskin Robbins is their technology cost which is $1,440 to $15,000 and their opening inventory cost which is $5,000 to $8,000. In addition, the ongoing costs are their Continuing Franchise Fee which is 5.9% and their Continuing Advertising Fee which is 5%.
Most franchises also come with a hefty royalty fee. Lucky for you, if you do decide to franchise Baskin Robbins, their royalty fee is reduced for the first 36 months. Your royalty fee is 2.9% during year one, 3.9% during year two, and 4.9% during year three. This gives you some time to build up traffic to the business during the first few years of operation.
Baskin Robbins also posted their capital contributions requirement:
- Up to $75,000 for a single restaurant
- $95,000+ for multiple restaurant development
- Equipment credits: $31,000
- Store refresh funds: $5,000
- Store remodel funds: $20,000
The ice cream brand also offers a 10-year financing when you franchise with them.
For veterans, Baskin Robbins offers a special deal. The franchise fee of $25,000 can be paid over 10-year payment plan. Veterans also receive reduced royalties for the first three years. So if you’re a veteran, thank you for your service and make sure to mention this fact during your application.
The term of the agreement to run a Baskin Robbins is 20 years and the franchise is renewable.
Average Sales / Revenue per Year
According to reports, Baskin Robbins has seen global sales of $2,372,979,252 with their United States system wide sales reaching $686 million in 2022. Franchise units can expect to see gross sales of $420,000 to $1,400,000 annually with an average profit margin of 20%.
Baskin Robbins Franchise Facts
|Total Units||7,670 (2,317 U.S.A)|
|Incorporated Name||Basin Robbins|
Baskin Robbins started in 1945 by Burt Baskin and Irv Robbins, two in-laws who each had an ice cream business of their own until they decided to join forces and work together. Both Baskin and Robbins were fond of ice cream that they made 31 different flavors for customers to enjoy one flavor every day of the month.
Baskin Robbins carries classic flavors such as vanilla and chocolate in addition to classics like Pralines ‘N Cream and Chocolate Chip. But the ice cream brand continues to innovate with new flavors like Strawberry Dragonfruit, PB ‘n J, and Pink Bubblegum. If you visit a Baskin Robbins location outside the United States will also carry unique regional flavors such as the Popping Shower from Japan which is made with white chocolate and mint with candy that pops in your mouth. You can find Baskin Robbins branches in Asia / Pacific, Europe, Canada, Caribbean, Middle East, and Africa.
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To franchise a Baskin Robbins, Contact them by filling up the interest form here. You can also head to their “Available Territories” page to see which state you would like to put up a Baskin Robbins. Be ready with your business plan because Baskin Robbins will want to check it out when they get back to you after submitting your information. If you also wish to franchise internationally, Baskin Robbins accepts inquiries. The website in Baskin Robbins India has a form up for anyone to fill out in case their interested.
Baskin Robbins will then study your financial qualifications. If all goes well, you’ll get to discuss with them your selected site, sign the agreement, go through the training and finally witness your grand opening.
Here are the qualifcations Baskin Robbins looks for in prospective franchisees:
- An entrepreneurial spirit
- A desire to serve
- A connection to community
- A willingness to learn
- The experience to succeed
- The financial resources to grow
Baskin Robbins has been recognized through the years as a well-renowned brand. They’re ranked number 1 in Entrepreneur’s Franchise 500 Ice Cream Franchise in 2021. They have also been ranked in QSR Magazine’s The QSR 50. Franchise Times has also recognized them in their top 200 list.
Baskin Robbins is owned by Inspire Brands who also owns Sonic, Arby’s, Dunkin’, Buffalo Wild Wings, and Jimmy Johns. The current chief executive officer or CEO is David Hoffman. Baskin Robbins’ headquarters is at Canton, Massachusetts.
How Much Does Baskin Robbins Make in Profit?
According to reports, Baskin Robbins franchise units see gross sales of $420,000 to $1,400,000 annually and their profit margin is 20%. Franchise owners can expect to see $84,000 to $280,000 annual salary. As you can see, if you were able to own a few of these franchise units it could be a lucrative endeavor.
Advantages of a Baskin Robbins Franchise
There are several advantages when you franchise Baskin Robbins. Here are some to expect:
Year Round Profit Potential
Summer isn’t the only season when everyone enjoys ice cream. This frozen treat is beloved all year round that the global ice cream market is expected to grow at 4.2% by 2030. That’s a market worth $114 billion. As they say, a rising tide lifts all boats. According to the experts this is an industry with high-growth.
Baskin Robbins isn’t just known in the United States. They’re known all over the world with over 7,000 locations. Baskin Robbins has a strong global presence that if you franchise them, you won’t have to worry about whether or not people would recognize the name because there is a high chance that they do.
To franchise Baskin Robbins, you’ll undergo their training which includes the following:
- Live, in-store technical training
- Instructor-led classroom training
- An online learning management system
- Mentoring and skill building
With these types of training, you’ll be fully equipped to handle a Baskin Robbins Store by the time you’ll be fully open.
Baskin Robbins has several store designs for you to choose from if you want to franchise with them. There are the traditional restaurants which can be freestanding, end-cap, or in-line. Or you can have the non-traditional restaurants which are stores you can put up in stadiums, airports, and universities.
Baskin Robbins has a strong legacy that’s been built for more than 7 decades. What started as just 31 flavor of ice cream has grown into a globally recognized brands. Franchising with Baskin Robbins means you’ll be a part of a generational ice cream business that’s proven to withstand changing consumer preferences and economic downturns.
Challenges of a Baskin Robbins Franchise
Before franchising a Baskin Robbins, it’s important to understand the challenges that face the chain. These can also help weigh your options on whether or not the investment risk is worth it.
Competition. Baskin Robbins isn’t just the only big name in the ice cream industry. You’ll have other major players too such as Ben and Jerry’s, Blue Bunny, Haagen-Dazs, and Tillamook. Competition is tough among these brands so you’ll have to rely on your franchisor for effective marketing strategies to continue to compete in the same league with them.
Changing consumer preferences. Consumer preferences for ice cream are changing with some consumers seeking healthier options. Baskin Robbins has responded to this trend by introducing lower-calorie and fat-free ice cream flavors, as well as frozen yogurt and other “Better For You” choices.
International expansion. Baskin Robbins has been expanding internationally in recent years, but the company faces challenges in entering new markets. These challenges include cultural differences, regulatory hurdles, and competition from local brands. Baskin Robbins has tried to address these challenges by offering regional flavors like Chocolate Crackle in Australia, a flavor made with chocolate ice cream and chocolate honeycomb pieces, Red Bean in China, a flavor made with red bean paste and milk, Sakura in Japan, a flavor made with cherry blossom-flavored ice cream.
Is the Baskin Robbins Franchise Right For You?
Baskin Robbins is a longstanding franchise in a market expected to grow through 2030. But the main factors contributing to the success or failure of any ice cream shop is always location, location, location. If you decide to open a Baskin Robbins where there are already established ice cream shops in operation, you might face some difficulty capturing market share. So be sure to understand the risks and your market before signing a franchise agreement.
What is an alternative Baskin Robbins?
Another ice cream franchise worth evaluating is Cold Stone Creamery. This ice cream brand has been around for 35 years and started in Arizona. They’re well-known for making fresh ice cream and also preparing custom ice cream in front of customers on a frozen granite stone. The chain has over 1,000 locations globally.
To franchise Cold Stone Creamery, expect the investment to be around $53,200 to $474,775 for a non-traditional store and $310-375 to $602,775 for a traditional one. The franchise fee is $27,000.
So is the Baskin Robbins franchise the one for you? I hope this guide was able to help you decide whether or not you’d like to find out more information.