Jollibee is a household name in the Philippines that’s starting to make waves across the pond in the United States too. The happy red and yellow bee that’s well-known for selling sweet spaghetti and crispy fried chicken is becoming a serious competitor to even the most famous fried chicken spots like KFC. The franchise generates billions in revenue which makes the restaurant an appealing franchise opportunity.
How much does it cost to open Jollibee? To be able to franchise Jollibee, you’ll need a net worth of $5,000,000. You can also expect the initial investment for this food chain is $450,000 to $800,000.
Are you serious about opening a Jollibee location? I share my full review of the franchise including detailed financials, startup fees, and the many advantages and disadvantages you can expect. Take our 7-minute franchise quiz to get matched with an opportunity that’s specialized to you.
Financial Requirements and Fees
The following are Jollibee’s unofficial financial requirements to franchise in the United States:
|Fees / Expenses
||Financial Amount (Estimate)
||$450,000 to $800,000
The figures above are estimates due to the fact that Jollibee has not disclosed how much it costs to franchise internationally. The only official detail that they released is if you want to franchise in the Philippines. The investment to franchise a branch in the Philippines depends on the store size but you can expect the amount to be around P35 million to P55 million as stated in the company’s website.
The following are included in the investment:
- Store construction
- Air-con system
- Furniture and fixtures
- Kitchen equipment and facilities
- Pre-operating expenses
Renewal terms, royalty fees, marketing fees, and other expenses are also not disclosed so it’s best to discuss this with Jollibee’s franchise representative on your meeting with them. But if you are looking for an idea on how much royalty fees in the Philippines are typically 3% to 10% of the monthly gross sales. However, do note that not all franchises impose a royalty fee.
Average Sales / Revenue per Year
Jollibee is known to be a brand that receives billions in revenue. In 2022, the company generated $3.59 billion in gross sales. This was an increase from 2021 revenue that came in at $3.07 billion. That’s more than $500,000 million sales increase over the period of only one year.
Jollibee Franchise Facts
||Jollibee Foods Corporation
||Food and Beverage
Rags-to-riches is one way to describe the success of Jollibee. The founder, Tony Tan Caktiong, migrated to Davao, Philippines from Southeast China. His parents started a restaurant there to support the family.
When he was 22 year old, Tony Tan Caktiong along with his wife Grace opened a Magnolia Dairy Ice Cream franchise in 1975 in Quiapo and Cubao with only Php350,000 from his family’s savings. He added hot foods to the menu aside from ice cream such as hamburgers and fries. This eventually led him to end his franchise with Magnolia and started Jollibee in 1978.
The name Jollibee was derived from how hardworking bees were. Manuel Lumba, the marketing consultant from Jollibee at that time, worked hand in hand with Tony Tan Caktiong in creating what a hardworking bee would look like. Millions were invested to trademark the design of Jollibee and the hamburger called the “Yumburger” that was the bestselling product.
Jollibee’s first international franchise was in 1987 in Brunei. By then, Jollibee Group was already the Philippines’ Top 100 Corporations. The company also started buying other restaurants in the Philippines such as Greenwich Pizza Corporation, Chowking, Red Ribbon, and Mang Inasal.
At present, the menu at Jollibee still includes the old classic favorite such as the Yumburger. Other burgers in the lineup are the Champ burger and Amazing Aloha burger. There’s also their sweet-style Jolly Spaghetti with slices of hotdogs and their Palabok, a Filipino rice noodle dish consisting of pork and shrimp sauce, green onions, pork cracklings, egg, and shrimp.
Jollibee is also known for their crispy fried Chicken Joy which has a strong cult following. The Chicken Joy was ranked number 4 in Redbook Mag’s list of Best Fast-Food Fried Chicken beating Zaxby’s, Shake Shack, Raising Cane, Wingstop, and even Kentucky Fried Chicken (KFC). Other bestsellers on the menu are their chicken sandwiches, burger steak, Jolly hotdogs, peach mango pies, ice cream sundaes, and pineapple juice.
To franchise Jollibee in internationally, you’ll need to submit a franchise application. This includes a Letter of Intent which expresses your interest in which country or area you would like to bring a Jollibee outlet. You will also need to submit a company and personal profile. These requirements are to be submitted to [email protected].
The types of franchises offered for interested international applicants are Territory Development Franchise or Area Development Franchise. According to their website, their criteria in selecting a franchisee are the following:
- With good corporate standing and reputation
- Corporate values are aligned with Jollibee
- Has 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
Jollibee and Tony Tan Caktiong have won several awards for their food and exceptional customer service. In 2004, they were named World Entrepreneur of the Year by Ernst and Young. The company was also known as the Philippines’ Leading Company by the Far Eastern Economic Review in 2003 for 6 years straight.
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The Asian Wall Street Journal also dubbed them the Most Admired Company in the Philippines in 2006 and they were featured in Forbes Asia’s Fab 50 in 2015. Meanwhile, Tony Tan Caktiong has been awarded Management Man of the Year by the Management Association of the Philippines in 2002 and Entrepreneur of the Year at the Asia Pacific Entrepreneurship Awards in 2015.
Jollibee has grown not only in expanded their own unit numbers, but they’ve bought franchise units of other chains as well. The company owns a chain of restaurants in China called Yonghe King, Hong Zhuang Yuan, Smashburger, The Coffee Bean and Tea Leaf, and Philippine franchises of Burger King, Tim Ho Wan, Yoshinoya, Panda Express, and Milksha.
At present, the Chief Executive Officer of Jollibee is Ernesto Tanmantiong. Jollibee has over 1,500 stores across the globe and 70 of those are located in North America. Other countries that have a Jollibee are the United Arab Emirates, Canada, Malaysia, Vietnam, Kuwait, Brunei, Saudi Arabia, Bahrain, Guam, Hong Kong, Qatar, Singapore, Oman, Italy, Macau, United Kingdom, and Spain.
Jollibee’s headquarters are located in Pasig City, Philippines and in West Covina, California.
How Much Does Jollibee Make in Profit?
There has been no data on how much Jollibee makes in profit in the United States only. But according to The Wall Street Journal, Jollibee has received a gross income of Php25,428,000 billion in 2021 with a growth of 82.62% from their 2020 data.
As for Jollibee franchise owners, there’s no official information on how much they make on average. But a research study claims that 34% of franchise owners receive less than $50,000 annually while 16% earn more than $200,000. Keep in mind that $50,000 per year in a country like the Philippines goes much farther than it would in the United States.
Advantages of a Jollibee Franchise
Franchising a big global brand such as Jollibee will have many advantages. Here are some of them you can look forward to.
Jollibee isn’t just well-known in the Philippines. The happy bee with its best selling fried chicken is known all throughout the globe. The fast food chain is right up there alongside big fast food brands as well so you know that they’re legit and that the brand can compete against them. They’re also a credible brand with over billions in revenue.
You won’t have to worry about getting customers when you franchise a Jollibee in your area. With its popularity, you’ll have people coming in and out all the time.
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One of the things that make Jollibee one of the best out there is the training that they provide to their staff. Jollibee is the one that provides manpower to their stores and trains them. The staff know the food products by heart and they work efficiently to provide good service.
Once you franchise a Jollibee, you’ll need to complete their Basic Operations Training Program at a store that Jollibee has designated. So you won’t need to worry if you’re capable of running a Jollibee because the company will prepare you for it.
Among The Best Employers
It’s important to do business with people who not only treat their customers with good service but to also put their staff first. Jollibee is named as one of the World’s Best Employers by Forbes this 2022. They’ve received this award for 3 years straight. They’re also the only Philippine company in Forbes list of World’s Top Female Friendly Companies.
So if you franchise Jollibee, rest assured that the company has your employee’s best interest at heart.
Challenges of a Jollibee Franchise
You might think that a big name like Jollibee won’t pose any challenges. But just like any other business, franchising Jollibee has its own set of challenges.
Individual Owners Only
As of this moment, Jollibee does not grant any franchise to corporations. They only grant franchises to individuals only. When a franchise is approved, the individual can then put up a corporation but it must be clear that the majority of the ownership is granted to the individual who signed up for that franchise. This type of requirement can be more of a hassle especially if you’re already registered as a corporation.
Fresh fried chicken.
Applied Sites Only
You might come across a problem with the property you’re eyeing for your Jollibee outlet if you don’t own the area. Only franchise applicants with applied sites are preferred by Jollibee. So if you don’t own any real estate, your application will be not be prioritized. Jollibee will still gather your application and put it in their data bank. But priorities are given to those with applied sites only. If you don’t own commercial real estate already, it will be more difficult to get approved through the franchise vetting process.
Jollibee is up against many quick service brands. They’re not the only brand that sells delicious fried chicken. There’s Kentucky Fried Chicken, Popeyes, Wingstop, and many more. What’s great about Jollibee is that it’s beloved by the Filipino community. But you cannot just rely on one target market only. If you are to franchise a Jollibee near you, expect to battle against big brands as well. You will face more difficult marketing challenges if you decide to open a location in the United States since this is not a nationally recognized brand.
Is the Jollibee Franchise Right For You?
Jollibee is world renowned quick service chain with a cult following for their fried chicken and spaghetti. To franchise a Jollibee means you’re right up there along with the big names in the quick service industry. You’re also assured you’re franchising with a credible brand with years of service.
However, with the lack of financial data to franchise Jollibee in the United States, one should tread with caution and speak to their franchise representative personally to know more about the expenses. Be sure to read their franchise agreement thoroughly so as to not miss out on any detail.
What is an alternative franchise to Jollibee?
If it’s fried chicken you’re looking for check out Dave’s Hot Chicken. The name may not have been around for years but they have seen fast growth in the quick serve restaurant market. They’re known to selling Nashville Hot Chicken sandwiches at different spice levels – The Reaper being their most spicy flavor that you’ll need to sign a waiver to enjoy.
Franchising a Dave’s Hot Chicken will cost you $40,000 in franchise fee. Expect the initial investment to run this franchise to be around $626,300 to $1,413,500. To know more about Dave’s Hot Chicken, check out our full guide here.
Even with over thousands of franchises and several brands both foreign and domestic under their wing, Jollibee doesn’t look like it’s slowing down any time soon. Franchising with this company could also open a broader business network for you. Just be sure to weigh your pros and cons before you do sign the franchise agreement.