How to Franchise: Red Ribbon Bakeshop



Is franchising a Red Ribbon Bakeshop a piece of cake? Find out below!

About Red Ribbon

For the original owners of Red Ribbon Bakeshop, baking cakes started out as a family hobby but it eventually blossomed into a booming business of cakes and pastries for people from all walks of life.

Red Ribbon opened its first store in Timog Avenue, Quezon City in 1979. Its popularity among Filipinos soon grew and eventually caught the interest of Jollibee Foods Corporation (JFC) which then decided to acquire the cake business in 2005. Now under the wing of Jollibee Foods Corp., Red Ribbon has expanded to more than 370 stores all over the Philippines and 33 store branches in the US.

Franchise Fee & Investment

To franchise Red Ribbon, prospective franchisees will have to shell out a Franchise Fee and Total Investment of P7 Million to P8 Million, depending on the store size and facilities.

There is also a Royalty Fee of 7% and Advertising Fee of 3% of the monthly gross sales of the store which franchisees will have to pay every month.

The total franchise investment already includes an Initial Set-up Fee of P600,000 (VAT-exclusive) which will be required to pay upon receipt of the franchise “Award Notice”.

The Red Ribbon franchise term is five (5) years and may be renewed upon mutual agreement of Red Ribbon and the franchisee.

According to Red Ribbon, the Return on Investment (ROI) and payback period will depend on several factors, including Sales, Market Potential, Investment, and the franchisee’s ability to manage the overall operations of the store.

Franchise Package Inclusions

The Total Franchise Investment includes the following franchise benefits and support from Red Ribbon:

  • Initial Set-Up Fee
  • Improvement/ Construction
  • Equipments/ Fixtures/ Furniture
  • Pre-opening Expenses
  • Hiring and Training of Store Team
  • Refrigerated Delivery Truck (4T and up)

Franchisees are responsible for providing manpower for the store team, however, Red Ribbon will assist in the screening and training process. The store team’s salaries and benefits are to be paid by the franchisee.

Franchise Application Steps

1. Submit the following requirements to Red Ribbon:

  • Letter of Intent (include the exact address of the proposed site)
  • Vicinity Map of the Proposed Site (include building perspective, if available)
  • Dimension and Layout of the site in sqm (Proposed site should be at least 70 sqm minimum)
  • Accomplished Red Ribbon Application Forms (with 2×2 recent colored photo of applicant)

The store site or location is a requirement if you want to apply for a Red Ribbon Franchise.

2. Submit the completed requirements through email at franchising@redribbonbakeshop.com.ph or you may also send it to their office address below.

3. Once your application is approved, you will be notified and then given an “Award Notice” which means you are qualified to be a Red Ribbon Franchisee.

4. Once you receive the Award Notice, you will need to pay the franchising fee in full.

5. You and your store team will then undergo the Basic Operations Training Program (BOTP). This training includes on-the-job training and classroom sessions. Additional training and support can be provided on a case-to-case basis.

6. Red Ribbon will assist you during the store opening and when the store is in full operation.

Additional Contact Information

If you have any inquiries or clarifications, feel free to contact:

Red Ribbon Franchise Relations Department
Ms. Brigette Z. Delizo
Direct: +632 982 5000 local 4225
Email: franchising@redribbonbakeshop.com.ph
Address: 29th Floor Jollibee Plaza Building, No. 10 F. Ortigas Jr. Road, Ortigas Center, Pasig City 1600

Interested in other food cart and food business franchises? Check out PinoyMoneyTalk’s Complete list of Philippine companies available for Franchising

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Information & Image Sources: Red Ribbon Company Website and Facebook page

About the Author

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4 thoughts on “How to Franchise: Red Ribbon Bakeshop”

  1. Is it possible to franchise red ribbon in stall only? Ang if how much would it be and whatvare the inclusions? Thanks

    Reply
  2. I dont have that huge amount of money for the investment.can i buy and sell red ribbon products with discount.i mean ex if i can get a 10% discount per cake or any products with minimum order of 50k will it be possible? Risking 7 to 8 mil is scary.im a business minded person but with min capital.

    Reply

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