Baskin-Robbins is one of the most popular ice-creams franchises in the world, and candidates looking to invest in an ice cream business might be wondering how much a Baskin-Robbins franchise owner makes.
With a low investment range starting from just $90,000, Baskin-Robbins may seem like an attractive business opportunity. But is it really worth investing in?
Make sure you do not leave out anything to find out the truth!
About Baskin-Robbins
Baskin-Robbins is a multinational ice cream chain known for its variety of interesting ice cream flavors.
This well-known ice cream chain was started in 1945 in Glendale, California, by Irv Robbins and his brother-in-law Burt Baskin, who left their jobs to start their individual ice cream parlor but later combined to form a chain of family-friendly ice cream restaurants.
Today Baskin-Robbins has become one of the world’s most loved ice cream brands, with over 7,900 locations in 52 countries.
Baskin-Robbins is an affordable franchise opportunity, and the company offers a lot of incentives, training, and support to eligible candidates.
To learn more about how much does a Baskin-Robbins franchise owner make, keep on reading!
((https://www.baskinrobbinsfranchising.com/about-baskin/))
Read More Details: Baskin Robbins Franchise For USA
Baskin-Robbins Franchise Investment Figure
| Franchise fee | $25,000 |
| Royalty fee | 5.9% |
| Marketing fee | 5.0% |
| Investment (mid-point) | $468,100 |
| Average sales | $289,076 |
| Minimum net worth | $100k – $200k |
| Minimum liquid capital | $100k |
How Much Does A Baskin-Robbins Franchise Owner Make?
The sales of a Baskin-Robbins franchise owner may vary depending on the type of franchise model you choose from, such as traditional, non-traditional, etc., your store’s location, etc.
However, on average, a Baskin-Robbins franchise owner makes $289,076 in sales annually.
This data is in accordance with the performance of 2,012 franchises operational in the year 2022.
| Type of restaurant | Number of restaurants | Median sales |
|---|---|---|
| Single brand restaurants | 848 | $503,428 |
| Combo Restaurants (shopping center / storefront) | 544 | $119,325 |
| Combo restaurants (free standing) | 620 | $144,842 |
| Average | 2,012 | $289,076 |
How Much Does Baskin-Robbins Employee Earn?
The pay of a Baskin-Robbins employee may vary depending on their experience level, area of living, department, skills, etc.
However, as per Indeed, on average, Baskin-Robbins’ hourly pay lies between $7.75 an hour for Produce Clerk to $18.97 an hour for a Meat Cutter.
If we look at the salary in yearly terms, then the average Baskin-Robbins salary lies in the range of $28,460 a year for Pet Groomer to $50,000 a year for Owner Operator Driver.
Pros And Cons Of Baskin-Robbins Franchise
Pros Of Baskin-Robbins Franchise
- Low-cost franchise.
- Best quality products.
- Ubiquitous brand.
- Offers initial training for franchisees.
- Offers different franchise models.
- Offers incentives to eligible candidates.
Cons Of Baskin-Robbins Franchise
- The season might affect the sales.
- No territory protection.
- External competition.
Baskin-Robbins Franchise Average Revenue & Profit
Baskin-Robbins is one of the most affordable franchises to invest in.
Baskin-Robbins franchise owners can make annual sales of $289,076 on average, and with a 30% EBITDA profit margin, they can earn net profits of $94,094 on average.
Since Baskin-Robbins has not shared any details regarding the net profit earnings of its franchises, we have shared an estimate here by doing the following calculation:
| Profit-and-loss | Amount ($) | As % of sales |
|---|---|---|
| Sales | $316,815 | 100% |
| COGS | $(89,342) | 28.2% |
| Rent | $(25,345) | 8.0% |
| Labor | $(73,501) | 23.2% |
| Royalty + marketing fees | $(34,533) | 10.9% |
| Adjusted EBITDA | $94,094 | ~30% |
Baskin-Robbins Franchise Failure Rate
To find out the franchise failure rate of Baskin-Robbins, let us look at the table below:
System-wide Outlet Summary
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2018 | 1,072 | 8 | -79 |
| 2019 | 993 | 24 | -44 | |
| 2020 | 949 | 57 | -55 | |
| Company-Owned | 2018 | 0 | 5 | 0 |
| 2019 | 0 | 7 | 0 | |
| 2020 | 0 | 9 | 0 | |
| Total Outlets | 2018 | 1,029 | 13 | -36 |
| 2019 | 993 | 31 | -44 | |
| 2020 | 949 | 66 | -55 |
As we can see, Baskin-Robbins has been in decline over the last three years, and franchises have closed at the rate of 50 units a year.
This indicates that either the franchises are not seeing expected returns or are not performing well.
To find out more, we recommend you to talk to existing Baskin-Robbins franchise owners.
Baskin-Robbins Franchise Payback Period
Let us do some calculations to find out the payback period of Baskin-Robbins:
| AVERAGE INVESTMENT | $402,500 |
| AVERAGE REVENUE PER OWNER | $289,076 |
| AVERGAGE PROFIT PERCENTAGE | 15% |
| AVERGAGE PROFIT PER YEAR | $94,094 |
| AVERAGE PAYBACK PERIOD | 4.5 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 402500/94094 = 4.27 = 4.5 Years based on median
The average investment for a Baskin-Robbins Franchise is $402,500.
With an average profit percentage of 15%, the average profit per year is $94,094.
This means that the average payback period for a Baskin-Robbins Franchise is approximately 4.5 years, and the total investment of $402,500 would be recouped within this period.
Fun Facts About Baskin-Robbins
- With the “31 flavors” concept, Baskin-Robbins is the only global ice cream chain with a unique concept representing a different flavor for each day of the month.
- Baskin-Robbins has a Gold Medal Ribbon flavor that was introduced to represent the U.S. Winter Winter Olympics in 1980.
- The founders, Irv Robbins and Burt Baskin, were brothers-in-law.
- Sean “Diddy” Combs, the American singer, got his first break at the age of 2 when he appeared in a commercial for Baskin-Robbins.
- Baskin-Robbins holds the record for the largest ice-cream cup ever made that weighed 8,865 pounds!
- The pink and blue logo of Baskin-Robbins is special because it not only represents B and R but also 31, which is the 31-flavor concept at Baskin-Robbins.
- Lunar Cheesecake and Astronut were invented by Baskin-Robbins in honor of the 1960s NASA space missions.
- Baskin & Robbins is named after the founders, and they flipped a coin to decide whose name would go first.
- Although Baskin-Robbins is known for its 31-flavor concept, over the years, they have offered more than 1,000 different ice cream flavors.
((https://www.baskinrobbinsmea.com/en/about-us/know-the-brand/fun-facts/))
What Is Baskin-Robbins Best Known For?
Baskin-Robbins is a globally famous ice cream chain that serves not only ice creams but also smoothies, ice cream cakes, sorbet, and more.
Baskin Robbins is mainly known for its 31 flavors concept that includes 31 unique ice-cream flavors representing each day of the month.
Another thing that makes them unique is that they allow their customers to taste all their ice creams before deciding which one they would like to purchase.
Over time, Baskin-Robbins has created and sold more than 1000 flavors that rotate seasonally.
Some of the most popular Baskin-Robbins ice cream flavours are:
- Strawberry Cheesecake.
- Nutty Coconut.
- Mom’s Makin’ Cookies
- Peanut Butter N Chocolate.
- Pink Bubblegum.
- Pistachio Almond.
- Pralines’ N Cream.
- Rainbow Sherbet.
- Old Fashioned Butter Pecan.
Is Baskin-Robbins Franchise Profitable?
From what we have discussed till now, it is clear that a Baskin-Robbins franchise owner makes an EBITDA profit of annual $94,094 on average.
However, the profit-earning potential highly depends on the franchise model you choose, your location, etc.
Also, since Baskin-Robbins is an ice cream franchise, its sales might get affected during the off-season. You can also check the sales figure in the image shared above.
The closing rate of Baskin-Robbins is also high – 50 units a year. This indicates that although Baskin-Robbins is profitable, the profitability may not be very high partly because of its seasonal nature.
Read: How Much Does A Chick-Fil-A Franchise Owner Make?
Baskin-Robbins Franchise Earning Potential
There is little scope to earn high profits by investing in a Baskin-Robbins franchise.
Franchise owners usually earn in the range of $41,900 – $94,094 annually.
And because of the seasonal nature of this business, it is hard to make more money from this franchise.
You can talk to the existing Baskin-Robbins franchise owners to find out what their current position looks like.
Wrap Up
Baskin-Robbin is an ice cream franchise, and it is considered one of the biggest names in the industry of ice cream.
However, because the ice cream business is a seasonal business, the sales of Baskin-Robbins may get affected during off-seasons.
The failure rate of Baskin-Robbins is also concerning. The only good thing about this franchise is that it is affordable since the investment cost to open Baskin-Robbins ranges between $90,000-$625,000.
So make sure you consider all aspects before deciding to invest in this franchise.
Frequently Asked Question
How much franchise fee does Baskin-Robbins charge?
Baskin-Robbins charge a franchise fee of $25,000.
What is the financial requirement to own a Baskin-Robbins franchise?
To own a Baskin-Robbins franchise, the candidate must have:
- $100k in liquid assets.
- $100k-$200k of minimum net worth.
How much royalty and marketing fee does Baskin-Robbins charge?
Baskin-Robbins charge 5.9% in royalty fees and 5.0% as marketing fees.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.