The Baskin-Robbins ice cream price offered to franchisees has been raised by over 30% in two months. Allied Brands Ltd (the Australian Master franchise) is still paying their dividend while pushing all the foreign exchange risk on to the franchisees! That fundamentally raises pricing exposure and risk for franchisees!

Here's the part of the memo that tells franchisees of the coming price lift.

Over the past 2 (two) months BR AUS have been providing the required frozen goods to all franchisees at a price significantly lower than the cost of getting the product from Canada to your freezers. Even with the increase incurred at November 1st 2008. For obvious reasons this cannot continue to occur. 

We have been notified by our suppliers and distributors of both frozen goods and dry goods that effective January 1st 2009 there will be further increases to the current cost of all products provided for the operation of a Baskin Robbins business in Australia.

Baskin Robbins Australia pricing is already the highest in the world. We will have raised our retail prices by over 50% in the last year. This never happened when Dunkin' Brands was running the chain in Australia.

Attached is a copy of the memo sent to Baskin Robbins franchisees in Australia.