Baskin-Robbins franchise investment opportunities

Baskin-Robbins is seeking investors with a minimum of £300,000 liquid capital to develop portfolios of at least five stores in certain regions of the UK

There is much to consider when examining any investment opportunity, particularly one for which a high initial outlay may be required. The most obvious factors will always involve the level of risk and potential return on investment. These concerns are naturally lessened when the considered investment is in a global brand boasting a successful track record in terms of reputation and enduring family appeal.

Such is the case with the speciality ice cream product giant Baskin-Robbins, winner of the Compare The Financial Markets award for The Best High Investment Franchise Opportunity 2013.

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Baskin-Robbins operates a proven franchise business model that enables it to expand at a steady rate. Investors can become part of a company that has been a leader in its market for more than six decades. However, high investment franchise opportunities with successful global brands are comparatively rare and potential investors have to proceed through a specially designed selection process to reduce risks, not only for the potential investor, but also for existing ones too.

Baskin-Robbins is seeking investors with a minimum of £300,000 liquid capital to develop portfolios of at least five stores in certain regions of the UK. Typically, a five-store portfolio can turn over £1 million in the first year of trading, with EBITDA of 10-15 per cent. In 2011 franchise reported sales across almost 7,000 Baskin-Robbins stores in over 50 nations totalled around US$ 1.8 billion.

Over 300 million scoops of Baskin- Robbins’ ice cream are served around the world each week and the company’s continuous effort to strengthen and grow its investment opportunity in the UK was the deciding factor in winning The Best High Investment Franchise Opportunity 2013 award.

“We have worked very hard over the last few years to establish Baskin- Robbins successfully in the UK market,” says Jim Johnstone, general manager UK. “We now have over 100 stores in the UK and great products that also ensure sales during the winter months, so it’s great to have our hard work recognised by such a great financial advice platform as Compare The Financial Markets.”

“We all know that Baskin-Robbins is a proven winner already,” says Michael Plaza of Compare The Financial Markets. “But in offering these extraordinary opportunities to investors to jump aboard and expand the brand in the UK, the company was an obvious choice for the award this year.”

When considering an investment with a high initial outlay, it is also important to consider how other investors have fared and why they chose to invest.

Brothers Ash and Bob Ghataaura opened their first Baskin-Robbins store in Chiswick, London. Ash has a food and hospitality background and decided that Baskin-Robbins offered a great opportunity to go into business with his brother.

“Initially I looked at a variety of franchises, but I felt that Baskin-Robbins was not only an up and coming, global household brand, but also offered a franchise opportunity where both franchisor and franchisee are maintaining a collaborative relationship that ensures success,” explains Ash. Those two factors were key to convincing Bob and I.”

Ash continues: “The past few weeks have been very exciting, as three weeks before our grand opening we also had a soft opening, which was great. Although it was a lot of hard work, it was definitely worth the challenge.”

The ice cream market is expected to experience a 12.4 per cent increase in value sales to £1.2 billion by 2017, according to market research specialist Mintel. Operating in a growth industry does not always transfer to long term business success, therefore it is key to have support and training procedures in place to provide investors with the skill set needed to successfully operate and manage their business. Hence, Baskin-Robbins has one of the most comprehensive operating systems and training manuals in the quick service restaurant industry, and both Ash and Bob took part in Baskin-Robbins’ industry leading training prior to the launch of their store.

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“We had our initial training in the Colindale store,” says Ash. “Training in an existing store was extremely beneficial for us. We have also hired a store manager, who used to work for Costa, which really helps and allows us to make the most out of our store.”

Ash and Bob are already looking for suitable locations for their second store and plan to open 10 Baskin-Robbins stores in total.

With a Baskin-Robbins multi-store franchise you will receive full support and training, as well as excellent return on investment.