Opening a Jollibee or McDonald’s Franchise
One of our readers, Vincent posted a question as a comment on another post, so I thought I’d answer it here, as a new post since it is somewhat unrelated to the post where the question was posted.
Vincent said that he and his wife were thinking of moving to the Philippines, and perhaps wanted to open a franchise of a Jollibee or McDonald’s fast food franchise in the Digos or Davao area in Mindanao.
Vincent, either Jolibee or McDonalds would be a great money maker! If you ever notice, in the Philippines, these places are always full of customers buying burgers, fries, fried chicken or whatever. Food is always a hit! It is not cheap to buy one of these franchises, though. I have done some work with a Franchising Company, and know a little bit about this. Although the company that I worked with did not represent either of these two fast food chains, it is my understanding that the Franchise Fee for a Jolliebee is around P23 Million (a little over $400,000) and the Franchise Fee for a McDonald’s is around P17 Million (around $340,000). These figures are a few years old, so they may have changed a bit, but should be fairly close to reality.
Yes, this is a lot of money to get started, but again you are buying a business that everybody knows, is well advertised, etc. I mean, if you open up a McDonald’s in Digos, it’s not like people will say - “hey, thereis a new place, I wonder what kind of food they have?”. No, when a McDonald’s goes up, everybody knows exactly what kind of food they can get there and what it will taste like. So, you are buying into an established business that is very well known, and it will succeed in almost 100% of cases.
So, if you can afford to open this kind of place, I think it’s a great investment, and will pay off over time, leaving you a nice comfortable living!
Good luck, Vincent!
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Hi Bob,
Just read on Jollibee USA website that their franchise fee for US stores is $35,000 and Royalty is 5% of gross. They require a networth of 1 million US with liquidity of $300,000. There are 10 jollibee stores here in the US and all in California cities with a large Pinoy population.
I think if I had 300,000 US, I’d put it in a conservative investments like a money market or CD and retire in the Philippines living off interest as long as I can. Beats retiring in Florida where property taxes and insurance can kill you.
Hi Allen - I agree. With 300k US Dollars, you could live a good life off the remnants of the cash. Lots of advantages to living in the Philippines and letting your money doing the work!
Hi
Just interested to know .how much wages counter staff and cooks gets at jollibee and Mcdonalds. how many hours a week or month they do
Thanks
Harby - I can’t say for sure, because I don’t work for McDonald’s. Regarding wages, that would vary depending on where the McDonald’s is, because there are wage boards that set minimum wages in every region of the Philippines.
I would say that the average worker at McDonald’s probably works 8 to 10 hours per day, and earns between P200 and P300. This is only speculation, though.
hi Bob
we will be opening burger and pizza fast food outlet (franchise agreed) in late april. I am in england. and i have a good friend who will be managing it. Can you sugest any reputable emplyment agency (if you have any information) in mandaue or cebu city,where we can hire personel to work in our fast food busienss.
thanks
Hi Harby - I do have a recommendation for you. I would check in with the AsiaPro Coop. They have some unique manpower techniques that they can assist you with in getting a good group of employees for your business. Their website is at asiapro.coop
Good luck with your business!
need info about opening a jollibee here in us. read from one of the writers about jollibee usa website. what is the website?
thanks
Hi Marilou - check here:
http://www.jollibee.com.ph/corporate/unitedstates.htm
yeah your right bob, it is really good to franchise like mcdonalds especially here in Digos, as i am from here… i am really very sure that the money you will earn will be back to you in just a few months or years i think… regards from Digos
hi bob,
‘nice to fo my found ur website here.m willing to live in philippines and we have planning to be one of the frnachise of jollibee.in iloilo city…so,pls.could u give me an advice how we will proceed to have this business.i will leave my roaming and text me as soon as u read this…so we can keep in touch via voice communication.
dont worry i will call u back as soon as possible too..9192169742….just text me,,okey..
have a great day always..
Hi magda- Not a whole lot of advice necessary. All you need to do is to contact Jollibee at their headquarters, buy a franchise, and hope that they approve the location that you choose. Keep in mind you will need P25-30 Million to buy the franchise.
Can I just be a 1/4 part owner of this kind of franchise. Can I start with $10,000?
Hi Dina- A Jollibee franchise is around $500,000. $10k won’t even buy you the grill to cook the burgers on. If you have $10k, better look for some other kind of business, because $10k is not nearly enough to get into a Jollibee.
good day!i’m working right now at the states and my husband to be is having a businesss here…were planning in the future to franchise a jollibee in my coountry philippines…since my course also is a food business management i am interested to have my own business in philippines..i want to know how to frnachise,how much money needed.Please send me mail to my email address since were planning to be home in philippines and start that business ..Please i need to know the details about this coz before were going home i need to think it over.Thank you very much.please keep in touch with me..
Hi belen- First question - do you have P25M? That is the franchise fee. You will need that and plenty more money to get started.
I and my best friend been thinking to start a burger business but we are living abroad. Our question is is there any possibility starting such business we as the capitalist and our trusted person will run the business at home. Can you please give us an advise if this will be possible. We would like to have more info regarding having a franchise store.
I do hope to hear from you and please mail soon. I will be going home by August so if there is a possibility regarding our plan at least I can do some practical things during my stay in the Philippines.
I will be waiting to hear from you.Mail me please.
Hello Magdalena de Guzman - Running a business from a distance is something that few people can do successfully. On something like a McDonald’s franchise where you will spend P20 million or so to get it started, I think it would be foolish to try to run it from afar. Just my opinion, though.
Hello!
Yes! anyone can start a business if you have 25 to 50 thousand dollars. Just start your own.No need for franchise business.Just be specific with your product like Dinah’s chicken house.Make sure your product is tasty.Rent a place as start cheaper this way.Once, the businees is going strong you can xpand buy borrowing some from a bank.Make sure that your store is painted nice inside and out.Servers must be in uniform with happy colors.
Adverstise.Know how to attract customer.Filipinos loves to eat.
They have pride and this is what takes them to Mcdonals,Jollibee,
Wendy’s etc. Do a fessibility study I know you will believe me,one
more thing though,find a good location this is the key to success.Just make sure your product is good.
Hi Rosa - What you say is mostly correct, and I agree. The only thing I would say is that it is certainly an advantage to go with a franchise like McDonald’s or Jollibee if you can, because you are virtually guaranteed success due to the name recognition factor.