Baskin-Robbins Domestic Franchise Sales Opportunities
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Transcript of Baskin-Robbins Domestic Franchise Sales Opportunities
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Franchise OpportunitiesBaskin-Robbins U.S.
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Today’s Meeting
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
Note to webinar participants: We invite you to submit your questions via chat
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Next Steps
OverviewFranchise
Opportunity
Franchisee Support
Today’s Meeting
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
Note to webinar participants: We invite you to submit your questions via chat
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WHO WE AREWho We Are
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Baskin-Robbins Brand Heritage
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
2 brothers-in-law, Burt
Baskin and Irv Robbins,
opened an ice cream shop in
Glendale, California
1945
Baskin-Robbins became one of the first food
franchises when Burt and Irv decided to sell locations
to shop managers
1950s
Rapid success! More than 400 shops in the
United States
1960s
International expansion begins with Canada in 1971 and
Japan in 1973
1970s
Today we continue our commitment to operations excellence and attract more than 300 million customers a year
6Overview
Franchise Opportunit
y
Franchisee Support
Next Steps
17,000 + DD & BR restaurants worldwide • 60 countries
1 billion+ U.S. cups of coffee sold annually
Over 95% aided brand awareness in U.S.
#1 in QSR customer loyalty for 5+ years
8.5M Facebook fans & 2M Posts per day
1,000+ ice cream flavors
95% aided brand awareness in U.S.
#1 U.S. hard serve ice cream
#1 ice cream franchise in the world
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Nigel Travis Chief Executive Officer
Baskin-Robbins is the world's largest
chain of ice cream specialty shops. Our
franchisees are key to our success. It is
our top priority to support them and
drive profitable growth in new and
existing markets across the U.S. where
we believe there are significant growth
opportunities for the brand.”
– Nigel Travis
“
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Vision
Be the world’s favorite ice cream brand
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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3 Brand Pillars
HERITAGE
Celebrate our history of
unparalleled variety and
unique, cravable flavors and
family values
HOSPITALITY
Deliver exceptional
guest satisfaction in a bright, clean and
welcoming environment
that people want to come back to
HAPPINESS
A place where you can treat
yourself to premium ice
cream, beverages, soft serve and cakes
that make shared
occasions special
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
Innovation Improves Performance
OverviewFranchise
Opportunity
Franchisee Support
Next Steps10
2013Liquid chocolate chips & exotic ingredients
BRight Choices™Fat free, dairy free, no sugar options
1,000+ flavor portfolio; first with hard and soft serve
Industry’s first frozen coffee beverage
31 flavors offered all at one time & Flavor of the Month
1945Innovative cake manufacturing
5.6MM BR Facebook Fans
4.2MM
BR Cakes Sold in the US
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New Products Launched
1BR’s Rank Among QSRs in Ace
Metrix’s Brand of the Year Watch List (knocking out DQ)
Baskin-Robbins 2012 Highlights
11Overview
Franchise Opportunit
y
Franchisee Support
Next Steps
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Source: Simmons
Our Guests
Self-described frozen treat experts. Obsessed with finding new things to try.
They embrace our brand positioning of More Flavors. More Fun.®
The Explorers
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Marketing Programs
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
Start locally but expand to National
when successful
Impulse oriented products — cups &
cones and sundaes to drive transactions
Cakes for birthdays, holidays, or any day
at all drive ticket
Transaction Drivers
PromotionsTicket Drivers
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FRANCHISEOPPORTUNITYFranchise Opportunity
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Keys to Success
The Products Our Guests Want
The Right Locations
The Right Shop DesignThe Right Franchisees
The Right Expressions of Our Brand
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Desire and resources to purchase a development opportunity for 1+ units
Holds adequate capitalization – minimum $125K in liquidity and $250K in net worth
Desire to maximize a territory’s sales
Passion for the community
Understanding and drive for local store marketing
Dedication to operational excellence
The Ideal
Candidate
Resources Passio
n
Experience
The Ideal Candidate
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
Development Options
Note: Baskin-Robbins franchisees can explore Dunkin’ Donuts franchising through the standard Dunkin’ Donuts qualification process.
The preference for continued Baskin-Robbins development
Standalone
Available to qualified franchisees when they do not conflict with existing or planned standalone Baskin-Robbins shops
Combo
SDAs are available for Baskin-Robbins development (typically 1–3 unit commitment)
Store Development Agreement
OverviewFranchise
Opportunity
Franchisee Support
Next Steps17
Understanding Territory
• We look into each market to identify the right opportunities and a Store Development Agreement (SDA) provides limited exclusivity to franchisees
• The BR market planning team determines the appropriate number of shops based on demographics and local population
18Overview
Franchise Opportunit
y
Franchisee Support
Next Steps
19Overview
Franchise Opportunit
y
Franchisee Support
Next Steps
It Starts with Real Estate
Modular Design (typically
800-1200 sq. ft.)Can Support
Drive-Thru
Standard Equipment
and Product Offering
Flexible Configurations:• standalone• end-cap• airports • malls• kiosks
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Flexible Shop Design
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Franchise Opportunit
y
Franchisee Support
Next Steps
Interior Design Elements
CelebrateIndulgeRefresh
Menu board with dynamic center LCD screen
Waffle pattern inspired facing
Optional expanded cake display merchandiser
Large format photography visible from outside
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Franchise Opportunit
y
Franchisee Support
Next Steps
Shop Design Parallels Menu Strategy
CelebrateIndulgeRefresh
High Margin ProductSophisticated Technology
Market Leadership
Core CompetencePremium Positioning
Unique FlavorsFlavor of the Month
Volume Opportunity
Simplify MenuAddress Pricing
BarriersBuild Day Parts
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FRANCHISEESUPPORTFranchisee Support
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Industry Leading Advisory System
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
District Advisory Council (DAC)
Represents Baskin-Robbins
franchisee specific issues
Regional Advisory Council (RAC)
Represents Baskin-Robbins
regionally
Brand Advisory Council (BAC)
Represents Baskin-Robbins
nationally
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Franchisee Support
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
YOU
Equipment
Manufacturing
Training
Finance Marketing
Culinary
SupplyChain
Operations
Design &Construction
Development
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Training Support
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
Technical Training
(live in-store)
Instructor-Led Classroom
Training
Online Learning
Management System
Mentoring and Skill Building
BaskinOnline.com Marketing Support
27Overview
Franchise Opportunit
y
Franchisee Support
Next Steps
60+ customizable local store marketing
tools available for order
BRnet Digital Library with 100s of
additional local marketing assets; printable from any
computer
Much More
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NEXTSTEPSNext Steps
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Fees Overview
$25,000 20 years 5.9% of
gross sales
paid weekly
5% of
gross sales
$121,750
–$373,595
Initial Franchise
Fee
Term of Franchise
Agreement
Continuing Franchisee
Fee
Ad Fund Contributio
n
Estimated Initial
Investment
All fees and other valuable information is included in the
Franchise Disclosure Document (FDD)
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
New Franchisee Incentive
• Available to new franchisees• 50% Off 20-Year IFF ($12,500 value)• 10 year IFF payment plan• Reduced royalty rates
New SDA Signed in 2013
• Available to new franchisees• New SDA signed in 2013 and opened thru YE 2014 • Free 20 year Initial Franchise Fee ($25,000 value) (limit 1 per franchisee)• Reduced royalty rates
Military Veteran Incentive
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Year 1 Year 2 Year 3 Year 4 Year 5
0.9% 1.9% 1.9% 2.9% 2.9%
Year 1 Year 2 Year 3 Year 4 Year 5
0% 0% 1.9% 2.9% 2.9%
New in 2013
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
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Conduct Due Diligence
• Review our US Franchise Disclosure Document* (FDD) as it provides prospective franchisees with information about the franchisor, the franchise system and the agreements they will need to sign so that they can make an informed decision.
• Speak with existing Baskin-Robbins franchisees to gain an understanding of the support the brand offers and begin building your business plan.
* The FTC requires franchisors to produce and share the FDD
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Franchise Opportunit
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Franchisee Support
Next Steps
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Steps in the Franchising Process
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
• Complete application• Application reviewed
& contacted• Once pre-screened,
receive access to Franchise Disclosure & Qualification Package
• Review Franchise Disclosure & complete Qualification Package
• Provide proof of citizenship or permanent residency
• Provide proof of assets • Credit check and initial
financial review completed
Step 1
• Once pre-qualified, meet with Franchise Manager
• Conduct due diligence; talk with existing franchisees
• Select territory and develop business plan
Step 2
• Criminal and enhanced background checks completed
• Present business plan to cross functional market team
• Submit legal entity documentation
• Treasury Department review completed, based on business plan
• Receive franchise approval
Step 3
• Sign agreement• Begin training• Select & submit site for
approval• Secure financing
Step 4
• Finalize lease or purchase
• Begin construction• Begin crew training• Store opening
Step 5
Pre-QualificationDue Diligence
& Territory Selection
Business Plan & Final Approval
Contract Execution,
Training & Site Selection
Store Opening Process
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A strong foundation & bright future
Flexible Developmen
t
Product Innovation
Global Presence
Brand Heritage
Successful & Diverse
Franchisees
Powerful Marketing
Dynamic Concept
Portfolio & Products
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
Operational Simplicity
Join us!
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For More Information
OverviewFranchise
Opportunity
Franchisee Support
Next Steps
Contact us at [email protected] www.baskinrobbinsfranchising.com
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THANKS
Note to webinar participants: We invite you to submit your questions via chat