Baskin Robbins 2011 Annual Report Download - page 45

Nearly 100% of Dunkin’ Donuts and Baskin-Robbins restaurants are owned and operated by franchisees. We
have construction and site management personnel who oversee the construction of restaurants by outside
contractors. The restaurants are built to our specifications as to exterior style and interior decor. As of
December 31, 2011, the number of Dunkin’ Donuts restaurants totaled 10,083, operating in 36 states and the
District of Columbia in the U.S. and 31 foreign countries. Baskin-Robbins restaurants totaled 6,711, operating in
44 states and the District of Columbia in the U.S. and 48 foreign countries. All but 31 of the Dunkin’ Donuts and
Baskin-Robbins restaurants were franchisee-operated. The following table illustrates restaurant locations by
brand and whether they are operated by the Company or our franchisees.
Franchisee-owned restaurants Company-owned restaurants
Dunkin’ Donuts—US* ...... 6,990 25
Dunkin’ Donuts—International 3,068 —
Total Dunkin’ Donuts* . . 10,058 25
Baskin-Robbins—US* ...... 2,451 6
Baskin-Robbins—International 4,254 —
Total Baskin-Robbins* . . 6,705 6
Total US ................. 9,441 31
Total International .......... 7,322 —
* Combination restaurants, as more fully described below, count as both a Dunkin’ Donuts and a Baskin-
Robbins restaurant.
Dunkin’ Donuts and Baskin-Robbins restaurants operate in a variety of formats. Dunkin’ Donuts traditional
restaurant formats include free standing restaurants, end-caps (i.e., end location of a larger multi-store building)
and gas and convenience locations. A free-standing building typically ranges in size from 1,200 to 2,500 square
feet, and may include a drive-thru window. An end-cap typically ranges in size from 1,000 to 2,000 square feet
and may include a drive-thru window. Dunkin’ Donuts also has other restaurants designed to fit anywhere,
consisting of small full-service restaurants and/or self-serve kiosks in offices, hospitals, colleges, airports,
grocery stores and drive-thru-only units on smaller pieces of property (collectively referred to as alternative
points of distributions or APODs). APODs typically range in size between 400 to 1,800 square feet. The majority
of our Dunkin’ Donuts restaurants have their fresh baked goods delivered to them from franchisee-owned and
-operated CMLs.
Baskin-Robbins traditional restaurant formats include free standing restaurants and end-caps. A free-standing
building typically ranges in size from 600 to 1,200 square feet, and may include a drive-thru window. An end-cap
typically ranges in size from 800 to 1,200 square feet and may include a drive-thru window. We also have other
restaurants, consisting of small full-service restaurants and/or self-serve kiosks (collectively referred to as
APODs). APODs typically range in size between 400 to 1,000 square feet.
In the U.S., Baskin-Robbins can also be found in 1,158 combination restaurants (combos) that also include a
Dunkin’ Donuts restaurant in either a free-standing or end-cap. These combos, which we count as both a Dunkin’
Donuts and a Baskin-Robbins point of distribution, typically range from 1,400 to 3,500 square feet.
Of the 9,441 U.S. franchised restaurants, 89 were sites owned by the Company and leased to franchisees, 883
were leased by us, and in turn, subleased to franchisees, with the remainder either owned or leased directly by the
franchisee. Our land or land and building leases are generally for terms of ten to 20 years, and often have one or
more five-year or ten-year renewal options. In certain lease agreements, we have the option to purchase, or the
right of first refusal to purchase, the real estate. Certain leases require the payment of additional rent equal to a
percentage (ranging from 2.0% to 13.5%) of annual sales in excess of specified amounts.
Of the sites owned or leased by the Company in the U.S., 25 are locations that no longer have a Dunkin’ Donuts
or Baskin-Robbins restaurant (surplus properties). Some of these surplus properties have been sublet to other
parties while the remaining are currently vacant.
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