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Queensland Couple Lose $600,000 Investing In Baskin-Robbins Franchises

Queensland couple lose $600,000 investing in Baskin-Robbins franchises

A Queensland couple say they lost $600,000 investing in two Baskin-Robbins ice cream stores.

The claim they bought the franchises based on “incorrect sales figures”.

Couple lose $600,000 investing in Baskin-Robbins

The pair told news.com.au they spent $300,000 on an outlet in West End in 2014 and a further $200,000 for another at Rosalie in 2016.

The allege the company promised:

  • The West End store will make $11,000 to $12,500 in sales each week, accounting for 10 percent of rent, but in reality, it makes $6,000.
  • The Rosalie outlet will make $8,000 to $10,000 a week in sales, however, it makes just $4,000 to $5,000.

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Franchisor ignores emails

The young parents tell news.com.au the franchisor “stopped responding to emails” despite their concerns about the discrepancies.

The couple also allege:

  • they are yet to receive refunds for “significant” costs of running multiple national promotions, such as monthly ‘buy one get one free flavour of the month’. 
  • And in addition, a new tub pricing model forced on them in late 2018 with little warning and no disclosure document, significantly increased costs for them.

They claim not all franchisees had to adopt the model, but they were not given an option to opt out.

Franchising is a risky business

Industrial advocate Miles Heffernan warned franchising is a risky business.

“Franchises bankrupt many small business owners, which is why it is important to get expert advice before risking your life savings,” he said.


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