- History
- A Multinational Company
- Jollibee Stores Around the World
- Financial Performance
- Impact of Covid-19 Pandemic
- Jollibee Franchise: In the Philippines
- Required Investment
- Application Process
- Qualifications
- Application Process
- Investment and Costs
- 1. Does Jollibee provide financing for the franchise investment?
- 2. Can a corporation apply for a franchise?
- 3. What is the store’s required lot size or floor area?
- 4. How long is the training program for franchisees?
- 5. Who will provide the manpower to operate the restaurant?
Key Facts About Jollibee Foods Corporation (JFC)
History
Jollibee is one of the most popular homegrown brands in the Philippines. Starting with two franchised ice cream parlors in Manila and Quezon City, keen entrepreneur Tony Tan Caktiong observed and responded to market demand by expanding their menu to include fresh meals and sandwiches. As these quickly became hot selling food items more than the desserts, he decided to end the ice cream franchise and replaced them with his own fast food outlets in 1978.
The menu offered in the 1980s consisted of what would be known as Chickenjoy, Jolly Spaghetti, and the Yumburger, all of which are being enjoyed and loved by Filipinos anywhere in the world.
A Multinational Company
Acquiring a franchise has its benefits as well as risks. You may check this article to learn more about the franchising business model.
Applying for a franchise of a Jollibee store is a huge investment, not only financially but also in other aspects.
Answer the following questions to see if you are fit to be a Jollibee franchisee:
- Are you an entrepreneur who is self-driven?
- Do you know how to motivate employees?
- Are you willing to devote time to overseeing the day-to-day operation of your restaurant?
- Are you willing to undergo full-time training in restaurant operations?
- Do you have significant financial resources to fund the investment requirement?
If you answered “Yes” to all these questions, then you are on the right track.
If you are determined to be a Jollibee franchisee, you need to scout for the best site to ensure the success of your business. Learn how to choose the right location for your restaurant in this article.
On the other hand, if you feel that you are not yet fully prepared to venture into a Jollibee franchise, you may look at other franchise opportunities that would better suit your personality and capabilities.
Once you decide that you are ready to explore operating your own Jollibee store, it’s time to look at the requirements and application process.
Jollibee Franchise: In the Philippines
Required Investment
Presently, the required investment to franchise a Jollibee store ranges from PHP 35 million to PHP 55 million depending on the final store size, concept, and facilities. The investment covers the store layout and design, construction, kitchen equipment and facilities, furniture and fixtures, air conditioning system, signage, and other pre-operating expenses.
Note that there are other costs associated with the operations of the restaurant that are not included in the initial investment. These are fees for store promotion and advertising, various services including repairs and maintenance, management, and royalty fees which is a percentage of the monthly net sales.
Likewise, the food costs, inventory, personnel salary and wages, lease rates, and other related expenses are excluded and are assumed by the franchisee.
Application Process
- Create an account at JFC’s Franchise Management app. You can track the status of your application in your account.
- Fill up the online application form found in the app, providing your personal and background information. You will be asked to upload a vicinity map and provide pertinent details of your proposed site (if any).
- The proposed location will be assessed by the franchise team, together with your application documents.
- An interview will be scheduled to discuss investment costs, return on investment, and other franchising details.
- Once the franchise is approved, you will need to attend and successfully complete the Basic Operations Training Program at a designated training store.
Note: You can still apply even without submitting a proposed site. Your profile will be stored in the database for future reference. However, interested franchisees with a proposed location will be prioritized in processing their application, which may take several months.
Jollibee Franchise: International
Qualifications
Jollibee has the following criteria for international 5 franchisees:
- Has good corporate standing and reputation
- Has corporate values that are aligned with Jollibee
- Has a strong belief in the Jollibee brand and commitment to partnership
- Has the capability to fund and successfully operate the business
- Has the capability to acquire sites
Application Process
You need to email the following documents to [email protected]:
- Letter of Intent (include the Country or Area of interest)
- Company and Personal Profiles
Investment and Costs
The following table 6 lists the required investment for international stores:
Country Total Investment US $450,000 to $800,000 Canada CA$575,000 to CA$1,025,000 United Arab Emirates AED 1,650,000 to AED 2,938,000 Singapore SGD 597,000 to SGD 1,062,000 United Kingdom £333,000 to £592,000 Malaysia RM 1,82 million to RM 3,24 million Saudi Arabia SR 1,69 million to SR 3,00 million The net worth requirement of a potential franchisee is $5 million.
Jollibee Franchise: Profitability
For both local and international franchises, the financial feasibility will be discussed in detail once your application is accepted and you are scheduled for an interview.
JFC does not disclose the projected profitability of franchised stores in public as it greatly varies depending on the market potential, forecasted sales, and the franchisee’s capability to manage the operations of the restaurant.
Jollibee Franchise vs. Competitors
In comparison to Jollibee, the initial capital expenditure for a McDonald’s 7 franchised store is around $1 million or PHP 52 million. The final amount will depend on the restaurant type, size, and site location.
The investment includes
- Architectural planning and global design fees
- Construction, leasehold improvements, and other relevant site work needed
- Air-conditioning system, kitchen exhaust, and stainless fabs
- Point of sale system
- Kitchen equipment, seating, signage, etc.
- Other furniture and fixtures
- Government-mandated documents
On the other hand, a KFC 8 franchise investment starts at PHP 19 million depending on the store type, area, and location.
Tips and Warnings
- There is a certain profile the Jollibee management is looking for in a franchisee. More than the capacity to invest, they are rigorously screening for motivated entrepreneurs who are committed to managing the restaurant and upholding the Jollibee brand and Filipino family values in their stores.
- The proposed site is a major factor in the approval of your application. Make sure that you conduct in-depth research of your location to determine business feasibility, competition, and the target market in the area.
- A major misconception in a fast-food franchise business is that it can easily operate on its own due to the established system and processes of the franchisor. In fact, the franchisee still needs to put in the work to manage the business operations and increase profitability by controlling costs, motivating employees, maintaining food quality, and improving customer service.
Frequently Asked Questions
1. Does Jollibee provide financing for the franchise investment?
No. Jollibee does not provide any direct or indirect financing for franchisees. Only those who can fund the investment fully will be considered in the application.
2. Can a corporation apply for a franchise?
Franchises for local stores are only awarded to individual entrepreneurs. However, if your franchise is approved, you can create a corporation to manage the business, provided that you can show that you have the majority of the ownership.
3. What is the store’s required lot size or floor area?
The final property size of the store will depend on the model or concept that will be chosen and discussed with the franchisee.
4. How long is the training program for franchisees?
Approved franchisees are required to complete the full-time Basic Operations Training Program at a designated training store, which usually lasts for 3 months. Refresher or supplemental training programs may be provided and required throughout the franchise term.
5. Who will provide the manpower to operate the restaurant?
Jollibee will assist in recruiting and training store crew members. During training, the franchisee will provide the salary and benefits of the employees.
References
- About Jollibee. (2022). Retrieved 18 May 2022, from https://www.jollibee.com.ph/about/#our-mission-vision
- SEC Forms. (2022). Retrieved 18 May 2022, from https://www.jollibee.com.ph/investors/fiscal-reports/sec-forms/sec-form-17c/
- Jollibee Foods Corporation (JFC). (2022). JFC Reports 2021 Results Based on Audited Consolidated Financial Statements. Retrieved from https://s3.ap-southeast-1.amazonaws.com/queen.jollibee.com.ph/2022/03/JFC-17C-Press-Release-2021-Audited-Financial-Statements.pdf
- Jollibee Foods Corporation (JFC). Emerging Stronger: 2020 Annual Report [Ebook]. Retrieved from https://bucketeer-9d45a0bc-28bd-439b-9619-e2bfda478d44.s3.amazonaws.com/public%2Fuploads%2FJFC-Annual-Report-2020_Final_2.pdf
- Franchising. (2022). Retrieved 18 May 2022, from https://www.jollibee.com.ph/franchising/#hfaq-post-0
- Jollibee Franchise For Sale – Fast Food Restaurant Franchise. (2022). Retrieved 18 May 2022, from https://topfranchise.com/products/jollibee-franchise-for-sale-fast-food-restaurant-franchise/
- Franchising. (2022). Retrieved 18 May 2022, from https://www.mcdonalds.com.ph/opportunities/franchising
- Franchising. (2020). Retrieved 18 May 2022, from https://corporate.kfc.com.ph/franchising/
Moanna Santos, MBA
Moanna Santos holds a Master’s degree in Business Administration (MBA) from the University of the Philippines – Diliman where she took elective courses in Risk Management, Asian Business, Consumer Behavior, and Business Ethics. She has 3 years of experience in Procurement in the Food and Beverage Industry. A first-time mom who is constantly amazed by her toddler, she hopes to inspire others by sharing her knowledge.
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