Baskin-Robbins Franchise Disclosure Document Analysis

Mandatory Affiliate Purchases Create Substantial Cost and Rebate Exposure

Franchisees must purchase all ice cream, sherbet, soft-serve, yogurt, sorbets, cakes, and related core products exclusively from Dairy Farmers of America (DFA). The franchisor or its affiliates receive a rebate of 5%–45% of all such franchisee purchases from DFA.

Source: p.36

Combined Royalty and Advertising Fees Total 10.9% of Gross Sales

The standard Continuing Franchise Fee is 5.9% of Gross Sales and the Continuing Advertising Fee is 5.0% of Gross Sales, for a combined weekly obligation of 10.9% of Gross Sales payable to the franchisor and its advertising fund.

Source: p.18

System Unit Decline Across Single-Brand Outlets Over Three Years

Single-brand Baskin-Robbins franchised outlets peaked at 1,042 at end of 2021, declined to 1,001 at end of 2022, and further declined to 978 at end of 2023, reflecting weak-to-negative unit growth across the period following a single-year spike in 2021.

Source: p.60