Baskin Robbins Franchise Cost in India [Is it a good investment?]

Does the first bite of a hazelnut rocher bring out the child in you? Or, the taste of a nawabi kulfi entices you to have one more help? Millions like you have regularly contributed to double-digit growth for the Indian Ice-cream Industry in the last several years. Whether on impulse or a planned take-home buy, ice-creams are the proverbial icing on India's fast-growing food and beverage sector.

The rising disposable income and increasing health consciousness among a large segment of the Indian population contribute to the growth of premium products. The high market growth prompts international brands to expand into the vast Indian market. Baskin Robbins, the leading global ice cream brand, is today a market leader in India in its business category.

In this article, we will discuss all aspects of how to get a Baskin Robbins Franchise from the Baskin Robbins Franchise cost in India to the entire process of a franchise arrangement. We will review where to apply and the support you may expect from the company as a franchisee. At the outset,  let's peek into a short history of the brand that will help you get a deeper insight into the company.

The beginning of Baskin Robbins

What started as Burton's Ice-cream shop in Glendale, California, in the US in 1945 (by Burt Baskin) became Baskin Robbins in 1948. A merger with Snowbird Ice-cream, a parlour owned by Baskin's brother–in–law, Irv Robbins, laid the foundation of this ice-cream mega-brand. Following wide-scale customer acceptance in the US, the brand went international in the seventies opening outlets in Japan, South Korea and a few other countries. Today it( Baskin Robbins) has over 8000 sales outlets across 55 countries.

Baskin Robbins entered India in 1993 under a JV arrangement with the Graviss group, who were already into ice-creams besides hospitality and other businesses. The first manufacturing facility started in Pune. The company operates a successful franchise-based business model in India. The brand is a favourite among consumers, and the delicious treats are available in 700+ outlets across 190 cities.

Why a Baskin Robbins Franchise in India?

• A high recall brand in India among the prospective customer segment
• A proven franchise model of operation in India
• Wide range of products catering to all sections of consumers
• Excellent support

Baskin Robbins: Franchisee Support

• Business development:  For site selection, negotiations shop opening in terms of design, construction and technical
• Project: Help franchise with Design and Construction of the outlet, monitoring work in progress
• Operational: Regular business consultation; supply chain management
• IT: Hardware and software support, including training
• Training: Regular training programmes for operational staff, handling product launch
• Promotion: Specific city/area wise promotional programmes besides all-India campaigns

Baskin Robbins Franchise Cost in India

The investment is linked to the type of outlet. Therefore, it will depend on on-premise Costs (Purchase, lease or rental cost), Equipment, Furniture and Interior decoration expenses, Employee cost and fees/ charges for franchise, Promotion and Branding cost. Other than the franchise cost, all additional costs depend on the city/location.

• Baskin Robbins presently has three operational formats,
• Kiosk, consisting of a front-opened cubicle with a minimum area of 150 square feet
• Parlour, A parlour includes a small preparation area along with some seating arrangements for customers.
• Lounge, The lounge model is a larger version of the parlour with more seating and hangout area.
• A ballpark investment figure is Rs. 11-14 Lakhs for Kiosk, Rs.13 to 18 Lakhs for Parlour and Rs.18 to 23 Lakhs for the Lounge outlet.

Baskin Robbins: Infrastructure and Investment Summary

Baskin Robbins Franchise: How to Proceed

1. Formalise your Plan

• Decide on the type of format(Kiosk / Parlour / Lounge )
• Location and Property (Existing / to be acquired /  purchase /Lease /rental; city /      area / space available / frontage)
• Investment (Initial / working capital ; own Vs. Loan / security)
• Estimation of sales, profitability ,ROI)

2. Information  required by Baskin Robbins for franchise application

The initial online franchise enquiry will only ask for contact details (Name, Address with PIN, phone number)

While the exact details are available on the real-time form, the pattern of information on the application form will be as below:

• Name of the Franchise
• Type of Business (Company / LLP / sole-proprietorship)
• Contact Details (Address / phone)
• Location of the proposed outlet( Area / City / State / Type of building)
• Outlet details (Estimated carpet area, Frontage, Parking facilities)
• Ownership of outlet( owned / leased / rental; lease or rent amount ,tenure ,terms)
• Other outlets in the vicinity( brands / local /any other ice-creams outlet)
• Finance related (Name /address of banker / Account or Relationship manager)
• Payment information(Franchise fees and others)
• Outlet operation ( person-in-charge –self, relative, professional manager, number of staff
• References( Name of two social references, other than relatives, who may be contacted by company staff

3) Approach the company formally( You may meet them or send an online enquiry to Baskin Robbins India )

4) Contact Details of Baskin Robbins India

5) Use your tentative business plan as a reference for discussions

Is a Baskin Robbins Franchise in India profitable?

• Baskin Robbins is a leading brand of ice cream globally and also in India. Their products have a reputation for product variety, quality standards, world standard packaging. Most importantly, Baskin Robbins enjoys customer confidence.
• The company has a clear brand promotion schedule as well as provides local counter-based measures to help sales.
• The returns are higher as most products offer a margin of 40 to 50 % (on item value)

However, all businesses come with associated risks, and ultimately it is your strategy and efforts that lead to success.

The Baskin Robbins Franchise Cost in India may look high if you are planning for just an entry into the food and beverage industry in India. But when you consider the brand profile, the sales potential and your future growth prospects, the scope of investment and returns suddenly appear lucrative!

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FAQs

Q. What are the criteria for appointing a second franchisee in the same locality?

Ans. Opening an additional outlet for any company is guided by only one consideration, sales potential in the area/locality, but not at the cost of existing business.

A premium brand like Baskin Robbins will evaluate the population of its targeted customer profile in the particular area. Additionally, suppose a specific locality has high customer traffic regularly due to the presence of shopping malls, kids' entertainment zones, or any other reason. In that case, a second franchisee is a possibility. The decision, however, will depend on the evaluation of the company officials.

Q. Can the existing franchise take on new partners?

Ans. Technically speaking, inducting additional partner/s means a change in the structure of the business enterprise. Since the original franchise arrangement has been awarded based on the setup at the initial stage, a change will mean a deviation.

Changes in the ownership structure are usually allowed subject to evaluation of the proposed partner/s and payment of specific fees. However, such conditions will be part of the particular franchise contract with Baskin Robbins.

Q. How is a franchise arrangement with Baskin Robbins different from a dealership?

Ans. Baskin Robbins operates through a branded outlet route. A franchisee is an extended arm of the company and is committed only to the Baskin Robbins products. Moreover, there are several support activities carried out by the company for a franchisee.

On the other hand, a dealership of any FMCG product is typically non-exclusive, and stores or outlets can stock and sell several items.