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

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Baskin-Robbins Brand Heritage

OverviewFranchise

Opportunity

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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

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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

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Vision

Be the world’s favorite ice cream brand

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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

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Innovation Improves Performance

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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

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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

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Marketing Programs

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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

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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

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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

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Experience

The Ideal Candidate

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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

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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

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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

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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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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

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Industry Leading Advisory System

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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

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YOU

Equipment

Manufacturing

Training

Finance Marketing

Culinary

SupplyChain

Operations

Design &Construction

Development

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Training Support

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Technical Training

(live in-store)

Instructor-Led Classroom

Training

Online Learning

Management System

Mentoring and Skill Building

BaskinOnline.com Marketing Support

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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

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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

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Estimated Initial

Investment

All fees and other valuable information is included in the

Franchise Disclosure Document (FDD)

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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

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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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Steps in the Franchising Process

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• 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

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Operational Simplicity

Join us!

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For More Information

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Opportunity

Franchisee Support

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Contact us at franchiseinfo@baskinrobbins.comVisit www.baskinrobbinsfranchising.com

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THANKS

Note to webinar participants: We invite you to submit your questions via chat