Baskin-Robbins

Baskin-Robbins charges a $25,000 initial franchise fee — among the lower end for national QSR (Arby's is $37,500, Burger King is $50,000). However, the effective fee depends on your format and timeline: Gas & Convenience locations pay pro-rated fees based on term length, and several incentive programs (NRO, Deeper NRO) can reduce fees to near zero for qualifying new openings, with royalties that ramp from 1.9% to 5.9% over five years.

The total investment of $307K to $623K sits in the mid-range for a smaller-footprint QSR. Real estate development (leasehold improvements) drives the biggest variable: $123K to $267K. Equipment, fixtures, and signage add another $115K to $185K, and the restaurant technology system runs $15K to $30K. The $0 to $30K working capital range at the low end is optimistic — operators should plan for the high end.

The ongoing fees are where Baskin-Robbins stands out for the wrong reasons. The standard royalty (Continuing Franchise Fee) is 5.9% of gross sales — above the QSR average of 5–6%, though Dunkin' (the sibling brand) charges the same. The advertising fee (Continuing Advertising Fee) is 5.0% of gross sales. Stack these and you're remitting 10.9% of every dollar to the franchisor before any other operating expense. For a $533K average-revenue location, that's $58K per year out the door in royalties and ad fees alone.

Regional rate variations exist: Alaska, Idaho, Montana, Oregon, and Washington pay just 1.0% royalty and 3.5% ad — worth knowing if you're in those markets.

Baskin-Robbins discloses average unit volumes (AUV) for 844 qualifying locations in FY2024. The overall average was $533K with a median of $521K — tightly clustered and consistent. The top quartile averaged $822K; the bottom quartile averaged $267K.

Traditional standalone locations (751 in the sample) did better than non-traditional/SDO locations: $565K average versus $273K for SDOs. If you're looking at a shared-space or gas station format, expect revenue roughly half that of a traditional store.

Critically, these are gross sales figures only. Baskin-Robbins does not disclose operating expenses, COGS, or net income in its FDD. You're working with revenue numbers and will need to model backwards using industry ice cream COGS benchmarks (typically 30–40% for premium ice cream concepts) plus the 10.9% fee burden to arrive at an operating picture. The average unit has been operating 28.6 years — long-tenured operators may have favorable lease terms that newer entrants won't replicate.

The Baskin-Robbins U.S. system has declined modestly but consistently: from 1,001 units in 2022 to 976 in 2024. The pace is decelerating — only 3 closures in 2024 versus 10 in 2023, with 33 new openings. That's the best new-opening year in the three-year window, suggesting the incentive programs are working.

The transfer volume (39 in 2024) relative to the total unit count signals reasonable secondary market activity — franchisees are selling businesses, not just abandoning them. No company-owned locations exist in this system; Baskin-Robbins is 100% franchised.

The 10.9% combined fee rate is the defining financial fact of this franchise. At $533K average revenue, you're paying $58K per year in combined fees before utilities, labor, COGS, or rent. Unless your location is generating above-average volume, this fee structure demands very efficient operations to yield acceptable returns.

The incentive programs (NRO, Deeper NRO) look attractive on paper — ramping royalties starting at 1.9% — but they reset to the full 5.9% by Year 5. Model your 5-year economics, not just Years 1–3.

Baskin-Robbins can charge for testing samples from proposed new suppliers ($1,000–$10,000 per test), meaning your sourcing flexibility is limited and comes at a cost. The training system charges $2,950 per additional attendee beyond the initial two covered in the franchise fee — relevant for businesses with management turnover.