|
Baskin-Robbins Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Investment Requirements for a Baskin-Robbins Franchise?
To open a Baskin-Robbins franchise, you should prepare for an initial investment ranging from $293,840 to $642,360. This includes a franchise fee of $25,000. Additionally, you’ll need to consider ongoing costs such as a royalty fee of 5.9% and a marketing fee of 5.0%. It's essential to have a cash requirement within the same range as the initial investment and a net worth between $100,000 and $300,000 to qualify for ownership.
What Is the Average Revenue Potential for Baskin-Robbins Franchisees?
Baskin-Robbins franchisees can expect to generate an average annual revenue of approximately $529,966 per unit, with a median revenue of $503,428. The revenue can vary significantly, with the lowest reported annual revenue being $14,875 and the highest reaching $2,123,921. Understanding these figures can help potential franchisees gauge the financial viability of their investment.
How Quickly Can You Expect to Break Even with a Baskin-Robbins Franchise?
Franchisees of Baskin-Robbins typically experience a breakeven period of about 12 months. This relatively quick recovery time can be appealing for investors looking to see a return on their investment. Furthermore, the investment payback period is around 18 months, indicating that franchisees may start to see profits shortly after covering their initial costs.
What Are the Operational Expenses to Consider with a Baskin-Robbins Franchise?
When running a Baskin-Robbins franchise, it’s crucial to account for various operating expenses. Average annual costs include occupancy expenses at about $86,924 and advertising expenses totaling $615,319. Other expenses, such as general and administrative costs, management fees, and depreciation, can add up, leading to total operating expenses of approximately $1,918,166. Understanding these costs can help franchisees manage their budget effectively and optimize profitability.
Baskin-Robbins Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Baskin-Robbins Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 894 | 1,042 | 1,001 |
| Net Change YoY | 148 | -41 | |
| Franchised Units | 894 | 1,042 | 1,001 |
| Net Change YoY | 148 | -41 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Franchise Overview
Baskin-Robbins is a globally recognized ice cream franchise, known for its wide variety of flavors and innovative desserts. Established in 1945, it has grown to become one of the largest chains of ice cream specialty shops in the world, with a strong commitment to quality and customer satisfaction. With a focus on community engagement and seasonal promotions, Baskin-Robbins continues to delight customers of all ages with its delicious offerings.
Investment Requirements
To become a Baskin-Robbins franchisee, the initial investment ranges from $293,840 to $642,360. This includes a franchise fee of $25,000. Potential franchisees should also have a net worth between $100,000 and $300,000, as well as sufficient cash reserves to support the business during its early stages.
Financial Performance
Baskin-Robbins franchises generate impressive revenue, with an average annual revenue per unit of $529,966. The median annual revenue is $503,428, showcasing the brand's strong market presence. Revenue can vary significantly, with the lowest annual revenue recorded at $14,875 and the highest at $2,123,921, indicating potential for growth based on location and management.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5.9% of gross sales, along with a marketing fee of 5.0%. These fees contribute to the brand's national advertising efforts and support local marketing initiatives, ensuring that franchisees benefit from Baskin-Robbins' strong brand recognition and promotional campaigns.
Operational Metrics
The average breakeven time for a Baskin-Robbins franchise is approximately 12 months, with an investment payback period of around 18 months. This efficient timeline allows franchisees to recover their initial investments relatively quickly, making it an attractive option for aspiring business owners.
Franchise Growth
Baskin-Robbins has shown steady growth in its franchise units, increasing from 894 units in 2020 to 1,042 units in 2021, before stabilizing at 1,001 units in 2022. This growth reflects the brand's popularity and the ongoing demand for its products, providing franchisees with a solid foundation for success in the competitive ice cream market.
Frequently Asked Questions
The initial investment for a Baskin-Robbins franchise ranges from $293,840 to $642,360, which includes the franchise fee and other startup costs.