Baskin Robbins 2015 Annual Report Download - page 15

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-5-
Other revenue sources include online training fees, licensing fees earned from the sale of retail packaged coffee and K-Cup®
pods, net refranchising gains, and other one-time fees such as transfer fees and late fees. For fiscal year 2015, we generated
5.4%, or $43.6 million, of our total revenue from these other sources.
International operations
Our international business is organized by brand and by country and/or region. Operations are primarily conducted through
master franchise agreements with local operators. In certain instances, the master franchisee may have the right to sub-
franchise. Increasingly, we have utilized a multi-franchise system in certain high potential markets, including the United
Kingdom, Germany, China and Mexico. In addition, we have a joint venture with a local, publicly-traded company for the
Baskin-Robbins brand in Japan and joint ventures with local companies in Australia for the Baskin-Robbins brand, in Spain for
the Dunkin’ Donuts brand, and in South Korea for both the Dunkin’ Donuts and Baskin-Robbins brands. By teaming with local
operators, we believe we are better able to adapt our concepts to local business practices and consumer preferences. We have
had an international presence since 1961 when the first Dunkin’ Donuts restaurant opened in Canada. As of December 26,
2015, there were 5,104 Baskin-Robbins restaurants in 47 countries outside the U.S. and 3,319 Dunkin’ Donuts restaurants in 42
countries outside the U.S. Baskin-Robbins points of distribution represent the majority of our international presence and
accounted for approximately 65% of international franchisee-reported sales and approximately 84% of our international
revenues for fiscal year 2015.
Our key markets for both brands are predominantly based in Asia and the Middle East, which accounted for approximately
69% and 18%, respectively, of international franchisee-reported sales for fiscal year 2015. For fiscal year 2015, $2.0 billion of
total franchisee-reported sales were generated by restaurants located in international markets, which represented approximately
19% of total franchisee-reported sales, with the Dunkin’ Donuts brand accounting for $678 million and the Baskin-Robbins
brand accounting for $1.3 billion of our international franchisee-reported sales. For the same period, our revenues from
international operations totaled $142.0 million, with the Baskin-Robbins brand generating approximately 84% of such
revenues.
Overview of key markets
As of December 26, 2015, the top foreign countries and regions in which the Dunkin’ Donuts brand and/or the Baskin-Robbins
brand operated were:
Country/Region Type Franchised brand(s) Number of restaurants
South Korea Joint Venture Dunkin’ Donuts 788
Baskin-Robbins 1,196
Japan Joint Venture Baskin-Robbins 1,191
Middle East Master Franchise Agreements Dunkin’ Donuts 458
Baskin-Robbins 778
South Korea
Restaurants in South Korea accounted for approximately 38% of total franchisee-reported sales from international operations
for fiscal year 2015. Baskin-Robbins accounted for 67% of such sales. In South Korea, we conduct business through a 33.3%
ownership stake in a combination Dunkin’ Donuts brand/Baskin-Robbins brand joint venture, with South Korean shareholders
owning the remaining 66.7% of the joint venture. The joint venture acts as the master franchisee for South Korea, sub-
franchising the Dunkin’ Donuts and Baskin-Robbins brands to franchisees. The joint venture also manufactures and supplies
restaurants located in South Korea with ice cream, donuts, and coffee products.
Japan
Restaurants in Japan accounted for approximately 18% of total franchisee-reported sales from international operations for fiscal
year 2015, 100% of which came from Baskin-Robbins. We conduct business in Japan through a 43.3% ownership stake in a
Baskin-Robbins brand joint venture. Our partner also owns a 43.3% interest in the joint venture, with the remaining 13.4%
owned by public shareholders. The joint venture manufactures and sells ice cream to restaurants in Japan and acts as master
franchisee for the country.