Baskin-Robbins, sister restaurant franchise to Dunkin’ Brands, have engaged in a new mission to turn the ice cream franchise’s less than savory earnings away from their normal flat or declining reports.
New and existing Baskin-Robbins franchisees are being offered major discounts to reward them for opening new ice cream franchise locations. Baskin-Robbins franchisees can now reduce their required initial $25,000 fee payment over the course of a decade, instead of paying the amount at once.
Qualified new and existing franchisees who elect to open new ice cream stores will also make reduced royalty payments to Dunkin’ Brands during the first five years of their new stores’ existence. The subsequent royalty payments, after the first five years, will return to the standard 5.9 percent. Existing franchisees looking to open a new store would only pay a $12,500 upfront fee for each new location, along with signing a new franchise agreement per new restaurant location. As with the new franchisees, veteran franchisees are eligible to pay the $12,500 fee over the course of 10 years.
Military veterans, meanwhile, will see the entire $25,000 fee waived completely and operate the first two years free of royalty-fees.
The goal of these incentives is to help stand alone Baskin-Robbins locations expand and encourage veteran involvement. Baskin-Robbins is also rolling out a new design for brick and mortar shops. Most Baskin-Robbins is currently expanding (mostly) within Dunkin’ Donuts shops.
These incentives became available in April and will continue to be available through June of 2014.