Baskin-Robbins
Bottom line
- Total investment $307K – $623K including a $25K franchise fee, 5.9% ongoing royalty.
- Average unit revenue of $533K/year (median $521K).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 211 loans (below the industry average).
- 19 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Baskin-Robbins unit return on the cash you put in?
Unlevered ROIC · per unit
8%
Below typical band (30–60%)
Overview
About
Franchisees operate ice cream retail locations focusing on scooped ice cream, frozen treats, and beverage sales. Day-to-day operations include inventory management, staff scheduling, customer service, equipment maintenance, and local marketing while adhering to Baskin-Robbins' operational standards and product specifications.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Baskin-Robbins presents high risk due to system contraction, extensive litigation history, missing profitability data, and unprotected territories in a mature, declining ice cream category.
Score breakdown · what drove the 51 / 100 rating
- 01MINORDeclining unit count (-0.2% YoY) indicates system contraction despite mature brand recognition
- 02MINORNo Item 19 (Average Net Income) disclosure prevents ROI validation; with $307k-$622k investment and $532k avg revenue, actual profitability is opaque
- 03HIGH18 active/recent litigation cases including franchisor-initiated breach of contract claims against franchisees signal operational/relationship tensions
- 04MINORUnprotected territory creates direct cannibalization risk and competitive pressure within same market
- 05MINOR5.9% royalty on $532k avg revenue = ~$31k annual royalty obligation with unknown net income makes breakeven analysis impossible
- 06MINOR20-year term locks capital into declining system with no performance guarantees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
78 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Baskin-Robbins · FDD (2025) PDF