Haagen Dazs
Häagen-Dazs offers ice cream parlors serving premium ice cream and frozen dessert products through various shop formats including traditional shops, hospitality shops, satellite locations, and area development agreements. Known for its high-quality ice cream, it operates in the luxury dessert retail industry.
About Haagen Dazs
Häagen-Dazs is an American ice cream brand, established by Reuben and Rose Mattus in The Bronx in 1960, owned by Froneri, a joint venture between Nestlé and PAI Partners. Starting with only three flavors: vanilla, chocolate, and coffee, the company opened its first retail store in Brooklyn, on November 15, 1976. The Pillsbury food conglomerate bought Häagen-Dazs in 1983, and now the brand is sold worldwide. Their product offerings include ice cream cartons, ice cream bars, ice cream cakes, sorbet, frozen yogurt, frozen milkshake, gelato, and ice cream sandwiches.
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Haagen Dazs franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a traditional Häagen-Dazs Shop is between $214,518 and $567,768. This includes $36,000 to $40,000 that must be paid to the franchisor or its affiliate(s). [p.1]
What is the initial franchise fee?
The initial franchise fee varies depending on whether you are new to the Häagen-Dazs System. For a new franchisee, the Initial Franchise Fee is $30,000 [p.13]. This fee covers pre-opening assistance and offsets some of the franchise recruitment expenses [p.13].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is $0.40 per gallon of Haagen-Dazs® products purchased for use in the shop, adjusted annually based on changes in the U.S. Bureau of Labor Statistics Consumer Price Index. Additionally, a continuing marketing contribution of $0.20 per gallon must be paid to support advertising and promotional activities, though these benefits do not need to be proportional to each franchisee's contributions [p.191, p.191].
How long is the initial franchise agreement, and can I renew it?
The term of the initial franchise agreement is not specified in the excerpts. However, you may be able to renew your franchise agreement; the fee for a renewal term ranges from $0 to $10,000 based on a formula in your expiring Franchise Agreement, and it is non-refundable [p.27].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can potentially sell or transfer your HäagenDazs Shop or Hospitality Shop, but the franchisor has no contractual obligation to consent to such a transfer [p.43]. The franchisor may require certain information and could provide training and site inspection services, though they are not obligated to do so. Additionally, the franchisor reserves the right to refuse a transfer for good cause [p.275, p.6].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.280]. Additionally, the franchisor may terminate the agreement if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure within a reasonable time frame after being given written notice [p.6, p.275].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide details on specific net worth or liquid capital requirements for franchise qualification. [p.129] mentions that a transferee must demonstrate satisfaction of qualification requirements, but these are not detailed in the provided excerpts.
Do I get an exclusive or protected territory?
This isn't specified in the excerpts. The FDD indicates that you will generally not receive an exclusive territory [p.43, p.44, p.159], and may face competition from other franchisees and various distribution channels [p.43]. However, under certain circumstances, such as entering into a Shop Area Development Agreement, you might have protected rights to develop Shops within a defined area [p.45].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training through 'Häagen-Dazs University,' a six-day program typically conducted by their Training Manager at a designated facility. Ongoing support includes providing new product development, employee training, and business information as deemed advisable. However, other than the initial training, there is no obligation for ongoing training unless remedial training is required to correct operational deficiencies. [p.36, p.41]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than the preceding one, and it does not authorize its employees or representatives to make such representations either orally or in writing [p.63]. However, if you are purchasing an existing Shop, the franchisor may provide actual records of that Shop's performance [p.63].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products and services authorized by the franchisor. You must purchase certain supplies from the designated distributor in your area, as specified by the franchisor [p.33]. This isn't specified in the excerpts for the exact list of items you must buy from these suppliers.