Tell us, isn’t this the case that the first name in ice cream that comes to most people’s minds is probably Baskin Robbins because it is one of the largest and most loved ice cream brands in the world and right here in India too, right? Its birth can be tracked to the year 1945 in the U.S.A. Growth into the Indian subcontinent was flagged off in 1993 and the company has become one of the most sought-after ice cream stores in India, with its 750 outlets and reach across 200 cities, that’s what we are talking about.
So, let’s say you are thinking of diving deep into the love for ice cream in India and want to capitalize on just that, in that case, wouldn’t it be a great option to go for a Baskin Robbins franchise? Well, that’s mainly the reason we are here with details like what’s the Baskin Robbins franchise cost in India, how many models they offer, what’s the profitability, and all that. So, here we go, and we hope that you are coming along.
Franchise Models Available
Alright, before you apply for the Baskin Robbins franchise, you must understand what are the models they offer and how much each of them is going to cost you. It is not like you can go ahead and apply straight away, nah, you’d have to choose between these three:
- Kiosk: The kiosk option represents the most basic of the choices, you know? Like, this is a great start if you have limited funds and require an area of around 150 sq. ft. Primarily it costs either ₹11 lakh or ₹14 lakh to launch this item.
- Parlor: The next option is the parlor, and as you can already guess, it requires about 300 square feet of space. This option is more expensive than the kiosk, usually around ₹13 to ₹18 lakhs.
- Lounge: The lounge is the biggest layout or model offered by Baskin Robbins right here in India. For around 500 square feet, the area for the store will be set up. It is great for busy spots and has a more extended product offering, you know? As for the investment, well, the cost of such a set-up would be in the range of ₹18 to ₹24 lakh.
So, all in all, you can pick one franchise model as per your investment budget and the space you already have. Not to mention that this is the freedom that many ice cream franchise brands don’t offer, that’s why Baskin Robbins is one of the best ones out there.
What’s The Initial Investment Breakdown Look Like?
You see, we’ll put it simply, in order to begin a Baskin Robbins franchise, you must invest in various things. Here are the costs involved:
- Franchise Fee: First of all, to set up your agreement with Baskin Robbins, you pay an initial sum of ₹4 to ₹5 lakhs. And it shouldn’t be hard to understand that this expense covers the permissions required for using their brand name, the marketing support provided by them, and the useful training done in this regard.
- Store Setup and Interiors: Then, just to set up the interiors of the store, including furniture, displays, and decor, you will have to invest ₹5 to ₹6 lakhs approximately.
- Equipment: Ice cream freezers, display cases, and the rest of the equipment like billing systems will set you back about ₹2 to ₹4 lakhs, just saying.
- Initial Stock: You also need about ₹1 to ₹2 lakhs of the first batch of ice cream, toppings, and other items required for the store opening, you know?
- Miscellaneous Costs: Lastly, these include marketing, staff training, and operating expenses for the first few months, which might cost around ₹1 lakh.
Thus, the total cost of starting a Baskin Robbins franchise can be from ₹10 to ₹20 lakhs approximately depending on the location and the type of store chosen, simple as that.
What About Ongoing Costs and Other Fees?
You applied for a Baskin Robbins franchise and you got approved, but it is not like you set up the outlet and you’re good to go. Nah, there are more ongoing costs and fees you should know about. What are those exactly? Here are the main ones:
- Royalty Fees: In its capacity as a sub-franchisor, Baskin Robbins will take a specific percentage of the monthly profits taken over the period, and the amount shall usually amount to 5.9% of the total sales.
- Advertising Fees: Additionally, 5% of the sales revenue has to be contributed by the franchisees for marketing activities, just so you know. In the case of Baskin Robbins, after the money has been collected from stores, it is used for continuing national and regional campaigns aimed at reaching potential customers and increasing their sales, you know?
That’s not it though, additionally, other factors that should be included in your operating costs are rent, the salaries of your employees, and utilities such as electricity and water.