How to Finance a Baskin-Robbins Franchise: Drive-Thru to Inline
By Anthony Cornella
A Baskin-Robbins franchise loan funds a shop built around freezers, display cases and, increasingly, a drive-thru lane. The brand now offers formats ranging from an inline storefront of about a thousand square feet to a freestanding building with a drive-thru, and the format you pick shapes the budget, the real estate question and the way a lender structures the deal.
This article explains what Baskin-Robbins’ franchising materials say a new restaurant costs, how its royalty, advertising and incentive programs affect cash flow, what the franchisor requires of new owners, what the brand’s SBA Franchise Directory note means in practice and how buyers of new and existing shops typically arrange financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Baskin-Robbins; the name is used only to describe the business. Figures from the franchisor’s disclosure document and franchising website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current disclosure document and franchise agreement with a qualified franchise attorney and accountant.
Baskin-Robbins Franchise Loan at a Glance
- Initial franchise fee: $25,000, according to the franchisor’s development materials, which reference the Franchise Disclosure Document (FDD) issued March 26, 2026. A development fee equal to 25% of the initial franchise fee applies to development commitments.
- Royalty: 5.9% of gross sales as the standard rate, with lower rates in certain regions; the franchisor notes that royalty rates differ by geography.
- Advertising fee: 5% of gross sales.
- Estimated total initial investment: $307,400 to $626,700.
- Financial requirements: minimum liquid assets of $100,000 and minimum net worth of $200,000.
- Formats: freestanding with drive-thru, endcap, inline and a newer small format.
- System size: more than 7,800 restaurants in 36 global markets in 2025.
- SBA Franchise Directory: listed (code S0195) with a note about the franchisor’s Option to Assume Lease when real estate secures the loan.
What Is Baskin-Robbins?
Baskin-Robbins traces its roots to Glendale, California, where Irv Robbins opened an ice cream shop in 1945 after leaving the military. His brother-in-law, Burt Baskin, opened his own shop in Pasadena after returning from World War II. In 1953 the two combined their businesses under the Baskin-Robbins 31 Ice Cream name. The “31” stood for the flavors offered on scoop at each location, so a guest could try a different flavor every day of the month.
The company opened its first store outside California, in Phoenix, in 1959, and franchising drove rapid growth in the 1960s, when the brand passed 500 locations across the U.S. The company describes itself as the world’s largest chain of ice cream specialty restaurants and reports more than 7,800 restaurants in 36 global markets in 2025.
The concept today. A Baskin-Robbins restaurant sells hand-scooped ice cream, sundaes, shakes and frozen beverages, and ice cream cakes are a major part of the menu. Shops receive finished product rather than making ice cream on site, which keeps production simple but makes frozen storage, display and cake preparation central to the layout.
Restaurant formats. The franchisor’s current development materials describe four formats:
- Freestanding: about 1,610 square feet with a drive-thru, requiring a minimum of 25,000 average daily traffic
- Endcap: about 1,645 square feet in mixed-use developments, with a drive-thru preferred
- Inline: about 1,006 square feet, a flexible size for storefronts, malls and social centers
- Small format: about 1,070 square feet, the newest design, which fits on a half-acre (22,000 square foot) lot
Why lenders view Baskin-Robbins the way they do. Lenders generally see a long-established brand with a simple menu and a well-defined operating model. They also know that ice cream sales can be seasonal in many markets, that cakes and drive-thru service help balance that pattern, and that occupancy costs and location quality matter a great deal in a shop of this size. A freestanding drive-thru unit on owned land is a different credit than an inline lease, and lenders underwrite each on its own terms.
Baskin-Robbins Franchise Costs
Initial franchise fee. The franchisor’s development materials list a $25,000 initial franchise fee and a development fee equal to 25% of the initial franchise fee. The franchisor has at times offered financing of the initial franchise fee over 10 years as part of its incentive programs, so buyers should ask what is currently available and confirm it in Item 10 of the FDD.
Real estate, lease and site work. Most inline and endcap shops occupy leased space. A freestanding or small-format restaurant may be built on a ground lease, in a leased building or on land the franchisee owns. The site question matters more at Baskin-Robbins than at many small-box concepts, because the freestanding format needs a site with a drive-thru and at least 25,000 average daily traffic.
Build-out and construction. Leasehold improvements for an inline shop, or construction of a freestanding building with a drive-thru, are typically the largest variable in the budget. Local construction costs, landlord allowances and site work all move the number.
Equipment, signage and technology. A shop needs ice cream dipping cabinets, display and storage freezers, cake preparation and display equipment, blenders and beverage equipment, point-of-sale systems, drive-thru communications where applicable, interior decor and exterior signage.
Opening costs and working capital. Opening inventory, initial training, deposits, insurance, grand opening marketing and additional funds for the first months are part of the initial investment estimate.
Total investment. Baskin-Robbins’ development materials list an estimated total initial investment of $307,400 to $626,700. The FDD’s Item 7 table breaks that total into individual cost categories, from the franchise fee and construction to equipment, opening inventory and additional funds. Review the current Item 7 table for each line item’s range, the format it describes and what it excludes; a freestanding drive-thru restaurant generally sits at a different point in the range than an inline shop, and land purchase is a separate question.
Ongoing Fees and How They Affect Your Loan
Royalty. The standard royalty listed in the franchisor’s materials is 5.9% of gross sales. The franchisor notes that royalty rates differ by geography, and its incentive materials show fixed lower rates for the term in certain states and regions. Your royalty rate should be confirmed for your specific market before you build projections.
Advertising fee. The advertising fee is 5% of gross sales. Combined with the standard royalty, that means more than a tenth of gross sales goes to the franchisor and the ad fund before rent, labor, product and loan payments.
Incentive programs. Baskin-Robbins has offered limited-time development incentives. The franchisor’s 2025 incentive program, for example, showed a standard royalty that stepped up from 2.9% in year one to 3.9% in year two and 4.9% in year three before reaching 5.9%, along with deeper programs for larger development commitments, a veteran program and remodel incentives paid as equipment credits. To receive the reductions, the franchisee had to build the restaurant to approved design and specifications, submit a report of development and opening spending within 120 days after opening and open by the required opening date. If any condition was missed, standard fees applied for that restaurant’s full franchise term.
Why incentives matter to a lender. A step-up royalty improves early cash flow, but lenders typically underwrite a Baskin-Robbins franchise loan to the full standard rate to make sure the restaurant can carry its debt after the incentive ends. Buyers should also treat the opening deadline as a financing issue: a construction delay that pushes the restaurant past its required opening date can cost the incentive entirely.
Refresh and remodel obligations. The franchisor’s incentive programs reference required refreshes and remodels, including updated signage and equipment. Buyers should read the current FDD and franchise agreement for the timing and scope of those obligations and build them into long-term plans.
How lenders factor these costs in. Lenders start from projected or historical gross sales, subtract the royalty and advertising fee, then rent or real estate costs, labor and product, and test what remains against the proposed loan payment. For seasonal markets, they often look at monthly cash flow, not just the annual total.
Franchisor Requirements for New Owners
The franchisor’s development materials list these minimums:
- Minimum liquid assets: $100,000
- Minimum net worth: $200,000
Baskin-Robbins also evaluates a candidate’s operating and business experience, development plans and market. Development commitments are made through a store development agreement that sets required opening dates, and the development fee applies to those commitments.
The approval process. Candidates generally inquire, receive and review the FDD, speak with existing franchisees, complete the franchisor’s approval steps, sign a development or franchise agreement and then move through site approval, design and construction. The required opening date in the agreement becomes a key date for both the franchisor and the lender.
Ways to Own a Baskin-Robbins
A new restaurant. New restaurants are financed on projections and the site. A lender will want the lease or land purchase documents, the construction or build-out budget, the equipment package and the development agreement with its opening deadline. Our restaurant start-up financing page describes how we approach new openings.
Buying an existing shop. With a long-established U.S. footprint, existing Baskin-Robbins shops come up for sale. A buyer purchases the business assets and goodwill, takes over or replaces the lease and obtains the franchisor’s transfer approval. Lenders can underwrite the shop’s actual sales and expenses, including how seasonal the business is. Explore our franchise acquisition financing options.
Multi-unit development. The franchisor’s programs have offered deeper incentives for larger development commitments. A multi-unit developer signs for several restaurants on a schedule, pays development fees and must fund each opening on time.
Relocations and format changes. An existing franchisee may relocate an inline shop to a drive-thru site or open a small-format unit. These projects look like new openings to a lender, supported by the operator’s existing history.
Financing Options for a Baskin-Robbins Franchise
SBA 7(a) loans. Because Baskin-Robbins is on the SBA Franchise Directory, an SBA 7(a) loan can finance a new restaurant’s build-out, equipment, franchise fee and working capital, or the purchase of an existing shop, subject to program rules and lender approval. A 7(a) loan can also include real estate when the business will occupy it.
SBA 504 loans. For a freestanding or small-format restaurant where the franchisee buys the land and builds the building, the SBA 504 program can be a strong fit for the real estate and long-lived equipment. Read the directory note below carefully before using real estate as collateral.
Conventional term loans. Operators with several restaurants or significant liquidity sometimes use a conventional business loan, particularly for refinancing or acquisitions. Terms vary widely by lender and borrower.
Equipment financing. Dipping cabinets, display and storage freezers, cake equipment, blenders, point-of-sale hardware and drive-thru systems can be financed separately, which can preserve cash for opening. See our franchise equipment financing and leasing page.
Working capital and lines of credit. In markets with cold winters, summer sales can carry the year, while holidays and celebrations drive cake orders. A line of credit can help manage payroll, inventory and rent through slower months and cover pre-opening costs. Learn about restaurant working capital options.
Real estate financing for drive-thru sites. When a franchisee buys or builds the property, the real estate becomes a long-term asset in the deal. Our franchise real estate expansion page covers financing land and buildings for franchise units.
Seller financing on resales. In some sales of existing shops, the seller carries part of the price. Any seller note is typically subordinate to the senior lender, and SBA and conventional programs may limit its terms. Our article on restaurant seller financing explains how these notes work.
SBA Loans for Baskin-Robbins Franchisees
SBA lending for franchises runs through the SBA Franchise Directory, a list of brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to appear on the directory before making an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it clears the franchise relationship for SBA review.
Baskin-Robbins’ directory listing. Baskin-Robbins is listed on the SBA Franchise Directory under code S0195, with this note: “When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Option to Assume Lease may not be executed.”
What the note means in plain English. Franchise systems often ask franchisees to sign a document that lets the franchisor step into the franchisee’s lease if the franchise ends. The directory note says that when the real estate where the restaurant operates will serve as collateral for the SBA-guaranteed loan, the Option to Assume Lease may not be executed. In practice, a borrower who owns the property (or has an affiliate own it) and pledges it to secure the SBA loan should expect that document not to be signed for that location, so that the lender’s interest in the real estate is not complicated by a franchisor’s right to take over occupancy. Your lender and franchise attorney will confirm which documents are signed at closing.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change and each loan is sized to the borrower’s cash flow, collateral and equity.
SBA application tips for a Baskin-Robbins deal.
- Confirm the royalty rate that applies in your market and whether any incentive program applies.
- Show monthly projections that reflect local seasonality and cake demand, not only an annual total.
- Provide the development agreement and its required opening date along with a construction schedule.
- If real estate will secure the loan, raise the directory note early with your lender and attorney.
To test payment scenarios, try our SBA loan calculator; results are planning estimates only and are not an offer or approval.
How Lenders Evaluate a Baskin-Robbins Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and owners with a significant stake typically provide personal guarantees.
Net worth and liquidity. The franchisor’s $100,000 liquid asset and $200,000 net worth minimums are starting points. A freestanding drive-thru project or a multi-unit commitment calls for more capital, and lenders look at post-closing reserves.
Industry and management experience. Food service, retail or multi-unit management experience strengthens a request. Lenders also want to know who will manage the shop day to day.
Business plan and projections. Projections should reflect the specific format and site: drive-thru traffic, nearby residential density, competition, the seasonal sales curve and cake and catering demand. They should show the royalty and advertising fee as separate lines, model the full standard royalty after any incentive period and include the cost of required refreshes or remodels.
The FDD and franchise agreement. Lenders review Item 5 for initial fees, Item 6 for royalty, advertising and other fees, Item 7 for the investment estimate, Item 10 for any franchisor financing, Item 17 for term, renewal and transfer, and Item 19 for any financial performance representations. They pay particular attention to the remaining term on a resale.
Site, lease or real estate. For leased shops, the lease should run at least as long as the loan and allow assignment. For owned real estate, lenders order an appraisal and environmental review and consider the SBA directory note on the lease option.
Historical financials for resales. Expect to provide several years of profit and loss statements, sales reports and tax returns, with monthly detail so the lender can see the seasonal pattern.
Drive-Thru, Equipment and Remodels
The brand’s newer formats lean heavily on the drive-thru. A freestanding restaurant needs a site with good access and at least 25,000 average daily traffic, and the endcap format prefers a drive-thru where possible. Drive-thru communications, menu boards and a layout that keeps scooping, cake retrieval and beverages moving efficiently are all part of the investment.
Frozen storage and display. Because every product depends on keeping ice cream at the right temperature, freezer capacity and dipping cabinet condition are critical. Lenders and buyers of existing shops should look at equipment age and service history, since a freezer failure in peak season is both a repair bill and lost sales.
Cakes and catering. Ice cream cakes require storage, decorating space and order management. They can smooth sales across the year, and projections should treat them as a separate revenue line.
Remodels. The franchisor’s incentive programs have offered remodel incentives for on-time and early remodels that meet full-scope requirements, including updated exterior signage. That signals that remodels are a normal part of ownership. Plan for them in long-term budgets and, for resales, ask when the next one is due.
Multi-Unit Growth and Development Agreements
Baskin-Robbins development runs through a store development agreement that commits the franchisee to opening restaurants by set dates. The development fee equals 25% of the initial franchise fee, and the franchisor’s programs have rewarded larger commitments with deeper incentives.
Financing a development schedule. Lenders usually finance each restaurant as it is ready to build, based on the site and the operator’s track record, rather than funding an entire schedule up front. Developers should plan equity for each opening and keep reserves so a slow first unit does not delay the next. Missing a required opening date can affect incentives, so construction timelines and financing approvals need to line up.
Combining units. As an operator grows, lenders can look at combined cash flow across restaurants, which may support refinancing or a larger facility for future openings.
Real-World Scenarios
A first-time owner buying an inline shop. A former retail manager buys an established inline Baskin-Robbins from a retiring owner. The lender reviews monthly sales to understand the seasonal pattern, sizes an SBA 7(a) loan to the shop’s actual cash flow and requires a working capital reserve for the winter months.
A new freestanding drive-thru on owned land. An experienced restaurant operator buys a pad site and builds a freestanding drive-thru restaurant. The real estate and building are financed through SBA 504 or 7(a), the equipment separately, and the lender and attorney address the directory note so the Option to Assume Lease is not executed for the pledged property.
A developer opening several small-format units. A multi-unit operator signs a development agreement for small-format restaurants. Each opening is financed as its site is approved, with the lender modeling the full standard royalty after any incentive period ends.
An owner relocating to a drive-thru site. A franchisee with a long-running inline shop relocates to an endcap with a drive-thru, using the existing shop’s history to support financing for the new build-out and equipment.
Common Mistakes to Avoid
- Assuming the standard royalty applies everywhere without confirming the rate for your market
- Building projections around incentive royalty rates instead of the full standard rate
- Missing the required opening date and losing incentive benefits
- Using annual averages that hide the seasonal dip in cooler months
- Overlooking the SBA directory note when pledging owned real estate
- Underestimating freezer replacement and remodel costs on an older shop
For more pitfalls that affect food service owners, see how to avoid costly restaurant loan mistakes.
Next Steps to Finance Your Baskin-Robbins Franchise
Step 1: Confirm the financial minimums. Check your liquid assets and net worth against the franchisor’s thresholds and document your equity sources.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 and any incentive program terms with a franchise attorney and accountant.
Step 3: Choose a format and site strategy. Decide between inline, endcap, freestanding or small format, and whether you will lease, ground lease or own the real estate.
Step 4: Talk with a financing specialist early. Learn how lenders will view your format, real estate plan and development schedule before you sign.
Step 5: Build monthly projections. Include your market’s royalty rate, the 5% advertising fee, seasonality, cake demand and future remodel costs.
Step 6: Apply and coordinate approvals. Submit your loan request with financial statements, tax returns, projections, the development agreement and site documents, and align closing with the franchisor’s site approval and opening date.
Step 7: Close, build and open on schedule. Manage construction to the required opening date, keep working capital in reserve and plan staffing for your first peak season.
Baskin-Robbins Franchise Loan FAQs
How much does it cost to open a Baskin-Robbins franchise?
Baskin-Robbins’ development materials list an estimated total initial investment of $307,400 to $626,700. Your cost depends on format, site, construction and whether you buy real estate.
What is the Baskin-Robbins franchise fee?
The initial franchise fee is $25,000, according to the franchisor’s development materials. A development fee equal to 25% of the initial franchise fee applies to development commitments.
What royalty does Baskin-Robbins charge?
The standard royalty is 5.9% of gross sales, and the advertising fee is 5% of gross sales. Royalty rates differ by geography, and incentive programs have offered reduced rates in early years for qualifying new restaurants.
How much liquid capital and net worth do I need?
The franchisor lists minimum liquid assets of $100,000 and minimum net worth of $200,000. Lenders may expect more for drive-thru or multi-unit projects.
Can I get an SBA loan for a Baskin-Robbins?
Yes, if you qualify. Baskin-Robbins is listed on the SBA Franchise Directory under code S0195. If real estate will secure the SBA-guaranteed loan, the directory note says the Option to Assume Lease may not be executed.
Does Baskin-Robbins offer financing?
The franchisor has offered financing of the initial franchise fee over 10 years as part of incentive programs. Confirm what is currently offered in Item 10 of the FDD. For how franchisor financing compares with outside loans, see our article on franchisor financing versus SBA and bank loans.
Can I buy the real estate for my Baskin-Robbins?
Yes, for freestanding and some small-format sites. SBA 504 or 7(a) loans can finance owner-occupied real estate, subject to approval and the SBA directory note on the lease option.
Can I finance equipment separately?
Yes. Freezers, dipping cabinets, cake equipment, blenders, point-of-sale hardware and drive-thru systems can often be financed through equipment loans or leases.
Can a first-time owner get a Baskin-Robbins franchise loan?
Yes, if the franchisor approves the candidate and the borrower meets lender requirements. Buying an existing shop with a sales history can make the first deal easier to underwrite.
Is the business seasonal?
In many markets, ice cream sales are stronger in warm months. Cakes, catering and drive-thru service can help balance the year, and lenders look at monthly cash flow to make sure the shop can carry its debt in slower months.
How long is a Baskin-Robbins franchise term?
The term, renewal rights and transfer conditions are set out in Item 17 of the current FDD and in the franchise agreement. Lenders will compare the remaining term with the loan term, especially on a resale.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see what financial performance representations, if any, it includes. For a resale, rely on the shop’s actual financial statements and tax returns.
Final Thoughts
Financing a Baskin-Robbins starts with the format and the site. An inline shop and a freestanding drive-thru on owned land are very different projects, and the royalty rate, incentive terms, seasonality and the SBA directory note all shape the right structure. A Baskin-Robbins franchise loan built on honest monthly projections and the full standard royalty gives an owner room to grow from one shop to several.
US Professional Funding helps franchise owners and buyers finance new restaurants, acquisitions, real estate, equipment and working capital for established brands. Learn more about our franchise financing solutions and restaurant business loans.
