Jollibee Franchise Cost, Owner’s Salary & Payback Period 2024

Jollibee has become a global phenomenon. The Filipino specialty fast-food chain, also lovingly referred to as “the McDonald’s of the Philippines,” has rapidly expanded its reach in recent years and is now sought after by foodies all over the world.

Given this immense popularity, it’s no surprise that many entrepreneurs are looking to open their own Jollibee franchise.

But what does it take to become a Jollibee franchisee? How much will you need to invest, and what kind of qualifications do you need?

This article is an in-depth guide to everything you need to know about how to open a Jollibee franchise – from the initial costs and requirements to the process involved and tips for success. So read on for all you need to know about opening a Jollibee franchise!

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Jollibee Franchise

About The Jollibee Franchise

Jollibee Franchise

Jollibee is a well-established Filipino chain of fast-food restaurants that has gained international recognition for its unique offerings.

Operating under the Jollibee Foods Corporation, the brand has expanded its reach beyond the Philippines.

It now boasts a presence in Southeast Asia, East Asia, the Middle East, Europe, and North America.

What sets Jollibee apart is its commitment to delivering high-quality, flavorful, and affordable food products. With a diverse menu that caters to various tastes, Jollibee has become synonymous with several signature dishes.

The chain is highly regarded for its signature Chickenjoy, mouth-watering Yumburger, and deliciously satisfying Jolly Spaghetti, among other delicious products.

Becoming a Jollibee franchisee opens doors to join a globally recognized brand that is renowned for its diverse Jollibee menu and commitment to quality.

By being part of the Jollibee family, entrepreneurs can bring the joy of their distinct flavors to customers worldwide.

InformationDetails
Starting Investments$450,000
Company TypeRetail Outlet
Company Foundation Year1975
Year of Launching the Franchise1979
Estimated Units5933
U.S. Headquarters
City of Industry, California
Country of OriginThe Philippines
Corporate Address10th Floor Jollibee Plaza #10 F. Ortigas Jr. Road Ortigas Center, Pasig City 1605

Jollibee Franchise History

Jollibee’s journey began in 1975 when Tony Tan Caktiong, along with his family, established an ice cream business in Manila, Philippines.

Responding to customer demands, they expanded the offerings to include sandwiches and hot meals.

As the food items gained popularity, the family made a pivotal decision to transform their ice cream parlor into a fast-food restaurant. Thus, in 1978, the first Jollibee outlet was born.

Originally known as “Jolibe,” the brand later adopted the name “Jollibee.” In January 1978, Jollibee Foods Corporation was incorporated.

The company experienced swift growth, opening seven branches in Metro Manila by late 1978.

In 1979, Jollibee marked another milestone with the launch of its first franchised outlet in Santa Cruz, Manila.

Jollibee’s success was further solidified when it withstood the entry of McDonald’s Philippines in 1981.

By focusing on the unique taste preferences of the Filipino market, which differed from McDonald’s offerings, Jollibee continued to flourish.

The company expanded rapidly, both within the Philippines and abroad, opening its first overseas store in Taiwan in 1986.

As of 2021, Jollibee has announced plans to open 509 stores in Canada and the US, further expanding its global presence.

Currently, Jollibee operates over 1,300 stores, with 1,150 located in the Philippines and 234 in various international markets.


Franchise Model Table

Cost Or FeesAmount
Initial Investment$450,000—$800,000
FranchiseYES
Franchise Fee$35,000
Royalty FeeN/A
LiquidityN/A
Estimated Outlets1300+

How Much Does It Cost To Open A Jollibee Franchise?

Cost To Open A Jollibee Franchise

Opening a Jollibee franchise entails various costs and investments. To become a franchisee, individuals must meet a significant net worth requirement of $5,000,000.

This requirement ensures that franchisees have the financial capacity to successfully operate and sustain a Jollibee franchise.

The initial investment for a Jollibee franchise typically ranges from $450,000 to $800,000.

This investment covers several aspects, including store construction and renovation, equipment and machinery, furniture and fixtures, signage, and pre-opening expenses.

Additionally, the investment includes costs related to training, initial inventory, and other operational necessities to ensure a smooth start for the franchisee.

While the exact franchise fee for Jollibee is not specified, it is typically estimated to be around $35,000.

The franchise fee grants franchisees the right to use the Jollibee brand name, trademarks, and operational systems.

It also covers the initial training and ongoing support provided by the Jollibee team to assist franchisees in running their business effectively.


Jollibee Revenue

Jollibee has seen immense success within the last year, with its 2021 financial year revenue reaching 154 billion Philippine pesos ($2.75 billion).

The impressive figure is a result of the brand’s continued commitment to delivering high-quality and affordable products, as well as its focus on expanding into foreign markets.

In addition, Jollibee reported that its net income jumped by 26% to 7.5 billion Philippine pesos ($133.9 million) in 2022 due to increased domestic and international sales along with better cost controls.

This indicates a positive trend for the future growth of Jollibee Foods Corporation and shows potential investors that investing in a Jollibee franchise could be lucrative.

Moreover, the company has seen success with its product innovations and campaigns.

Its highly popular ‘Jolly Spaghetti’ has become a favorite among customers, and its ‘Jolly Joys’ campaign, aimed at celebrating and connecting with customers, has been met with enthusiasm. 


How much does jollibee franchise earn per day?

Total Profit for the YearApproximate Value
Total Profit for the Year 2022$133,900,000
Number of Units 20225,933
Individual Profit Per Unit Per Year$22,561.21
Individual Profit Per Unit Per Day$61.69

To calculate the individual profit per unit per year, divide the total profit for the year ($133,900,000) by the number of units (5,933):

Individual Profit Per Unit Per Year = Total Profit for Year / Number of Units = $133,900,000 / 5,933 ≈ $22,561.21

To calculate the individual profit per unit per day, divide the individual profit per unit per year by the number of days in a year (assuming 365 days):

Individual Profit Per Unit Per Day = Individual Profit Per Unit Per Year / 365 = $22,561.21 / 365 ≈ $61.69

Therefore, Jollibee made approximately $61.69 in profit per day per unit in 2022.

What Is Jollibee Monthly Income?

To calculate the monthly profit per unit for Jollibee in 2022, we can divide the individual profit per unit per year by the number of months in a year (12 months).

Individual Profit Per Unit Per Month = Individual Profit Per Unit Per Year / 12

Using the previously calculated value for the individual profit per unit per year ($22,561.21):

Individual Profit Per Unit Per Month = $22,561.21 / 12 ≈ $1,880.10

Therefore, Jollibee made approximately $1,880.10 in profit per month per unit in 2022.


Jollibee Franchise Requirements

Opening a Jollibee franchise comes with specific requirements that potential franchisees need to meet.

These requirements ensure franchisees possess the qualifications and commitment to successfully operate a Jollibee franchise.

One of the key requirements is a minimum net worth of $5,000,000. This financial criterion demonstrates the franchisee’s capacity to invest in and sustain the business.

Additionally, Jollibee seeks individuals who are self-driven entrepreneurs with a motivational spirit.

Franchisees should have a strong desire to excel in the fast-food industry and be motivated to provide exceptional service to customers.

Franchisees must be willing to devote their time to oversee the franchise’s day-to-day operations. This hands-on involvement is crucial for maintaining the quality and consistency that Jollibee is known for.

Additionally, prospective franchisees must be willing to undergo full-time training provided by Jollibee to ensure a comprehensive understanding of the brand’s operational systems and standards.

Another important requirement is the ability to fund the necessary investment for opening a Jollibee franchise.

As mentioned earlier, the initial investment typically ranges from $450,000 to $800,000. Franchisees should have the financial resources to cover these costs and sustain the business during its early stages.


Payback Period Of Jollibee

With an investment of $800,000 and an average yearly profit of a Jollibee franchise owner earning $225,000, we can calculate the recoupment time of the company.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $800,000 / $225,000 = 3.5 years

Based on these figures, it will take approximately 4 years to pay back the initial investment for Jollibee. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Jollibee Franchise Training And Support

Jollibee Franchise Training And Support

Jollibee places great importance on the training and support it provides to its franchisees, recognizing that a well-prepared and knowledgeable franchisee is crucial for the success of the business.

Upon becoming a franchisee, individuals are required to complete the Basic Operations Training Program (BOTP) at designated training stores.

The BOTP lasts approximately three months and covers various aspects of Jollibee’s operations, including food preparation, service standards, quality control, and customer service.

This comprehensive training equips franchisees with the necessary skills and knowledge to manage their Jollibee franchise effectively.

In addition to the initial training, Jollibee also assists franchisees in the recruitment and training of their management team.

This support ensures that the franchisee has a competent and well-trained staff to handle the day-to-day operations of the franchise.

Recognizing the need for continuous improvement, Jollibee periodically provides refresher or supplemental training to franchisees or their designated managers.

This ongoing training helps franchisees stay updated on the latest operational standards, industry trends, and best practices.

Furthermore, Jollibee offers continuous support to its franchisees. This support includes guidance on in-store operations, marketing strategies, product development, and quality control.

Franchisees can rely on the expertise and experience of Jollibee’s support team to address any challenges they may encounter and to help them navigate the ever-evolving fast-food industry.


Jollibee Franchise Terms Of Agreement & Renewal

Jollibee is committed to providing its franchisees with long-term success. The initial term of a Jollibee franchise agreement is 10 years and may be eligible for renewal for an additional 10-year term upon meeting certain requirements.

In order to qualify for renewal, the franchisee must demonstrate their commitment to excellence by ensuring that the store meets Jollibee’s operational and performance standards.


Jollibee Franchise Obligations And Restrictions

When entering into a Jollibee franchise agreement, franchisees are bound by certain obligations and restrictions to maintain the brand’s integrity and uphold operational standards.

These obligations and restrictions ensure consistency and uniformity across all Jollibee franchise locations.

One primary obligation is that the franchisee (if an individual) or the Designated Manager (if a business entity) must provide direct supervision over the franchised restaurant.

This ensures that the franchisee or Designated Manager maintains control and oversight of all operations, upholding the brand’s standards and quality.

Franchisees are also obligated to use the approved location exclusively for the operations of the franchised restaurant.

This requirement ensures that the Jollibee brand is consistently associated with a specific location and maintains a consistent presence in the market.

Maintaining regular operating hours as specified in the Franchise Disclosure Document (FDD) is another obligation for franchisees.

This ensures that customers can rely on consistent service and availability at the Jollibee franchise location.


Jollibee Franchise Financial Assistance

Jollibee does not offer direct or indirect financing for its franchisees, but there are other options available for individuals looking to open a Jollibee franchise.

Franchisees can explore their loan options with banks and other financial institutions in order to secure capital for the initial investment.


Jollibee Comparison

CompanyJollibeeKFC
Year Founded19781952
Franchise Fee$35,000$45,000
Initial Investment$450,000—$800,000$1,442,600–$2,771,550
Number of Outlets130025,000

Conclusion

Opening a Jollibee franchise is a big endeavor, and there are many things to consider before taking the plunge.

It’s important that potential franchisees understand and meet the necessary qualifications, financial requirements, obligations, and restrictions before signing on as a Jollibee franchisee.

With the right preparation, dedication, and long-term commitment to excellence, owning a Jollibee franchise can be an incredibly rewarding endeavor.


FAQs

Does Jollibee Offer Franchising?

Yes, Jollibee offers franchising for individuals and businesses looking to open a Jollibee restaurant.

Who Founded Jollibee?

Jollibee was founded by Tony Tan Caktiong in 1975.

How Many Jollibee Locations Are There?

As of 2023, there are more than 1,300 Jollibee locations throughout the world.

Is Opening A Jollibee Franchise Worth It?

Opening a Jollibee franchise can be an incredibly rewarding endeavor, but every individual’s situation is different.

It’s important to do your research and take into account the financial costs, training, and commitment involved before making any decisions.

Where is Jollibee headquartered?

Jollibee is owned by Jollibee Food Corporation, which is located in Pasig, Philippines.

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