Baskin-Robbins Franchise

Baskin-Robbins, a Inspire Brands franchise, has been franchising since 1948 — 3 years after the concept was founded in 1945 , currently with 7,500 total locations in the food & beverage sector, headquartered in MA. According to the 2024 FDD, the total initial investment ranges from $94K to $402K — a 328% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $25K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 5.9% of gross sales with an additional 5.0% national advertising fund contribution, bringing the combined ongoing cost to 10.9% of every dollar in sales. Critically, Baskin-Robbins does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $400K, meaning the typical unit pays roughly $24K per year in royalty alone. Revenue is not profit — actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently negative: Baskin-Robbins contracted by 1.3% year-over-year with 200 closures on the record. Contraction warrants careful investigation — it can reflect market saturation, unit-level unprofitability, franchisee disputes, or a deliberate pruning of underperforming locations. Call Item 20 contacts and ask specifically about closure reasons. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.