Red Ribbon is one of the popular bakeshops every cake lover would know. The owners of this bakeshop started baking delicious cakes as a hobby. But many people from all walks of life have patronized the pastries and cakes, thus the simple hobby flourished into a successful business.
It was in 1979 when Red Ribbon launched its first outlet in Timog Avenue, Quezon City. However, in 2005 Jollibee Foods Corporation acquired the business knowing that it is popular among Filipinos. Presently, Red Ribbon has 370 outlets throughout the Philippines and in the United States, the cake business has 33 branches.
Profitable investment of Franchising Red Ribbon Bakeshop
Red Ribbon is a profitable business that’s why many entrepreneurs were enticed to franchise the business.
How much does it cost to franchise Red Ribbon?
The total cost of investment depends on the size of the store and the facilities. Approximately, it would cost about 7 to 8 million pesos. The franchisee will also pay 3% advertising fee and 7% royalty fee from the gross sales every month.
The franchisee must pay the Initial Set-up fee amounting to Php600,000 upon receiving the Award Notice for the franchise. The franchise term is within 5 years and renewable depending on the mutual agreement of the franchisee and Red Ribbon.
The payback period and the return on investment is obtainable depending on several factors such as the sales, investment, the ability of the franchisee to operate the store and the market potential.
Package inclusions of Red Ribbon Bakeshop
Franchising Red Ribbon covers the following:
- Initial set-up fee
- Pre-opening expenses
- Construction/improvement of the outlet
- Refrigerated delivery truck
- Training and hiring of the store team
Red Ribbon will also provide support to the franchisee in terms of the training and screening of manpower.
How to apply for a Red Ribbon Bakeshop franchise?
Anyone who is interested to apply for the Red Ribbon franchise should prepare the following documents:
- Letter of intent citing the exact location of the site
- Vicinity map including the building perspective of the proposed site
- Layout and dimension of the proposed site with a minimum of 70 sq. m
- Accomplished application form with the latest 2×2 colored picture of the applicant
If the franchisee passed the qualification, the application will be approved and the “Award Notice” will be granted. Upon receiving the Award Notice the franchisee will pay the complete amount of franchising fee.
The franchisee along with the store team will undergo the basic training program that includes classroom sessions and OJT. Red Ribbon will provide support during the launching and throughout the operation.
For more inquiries, you can contact:
Red Ribbon Franchise Relations Department
Ms. Brigette Z. Delizo
Direct: +632 982 5000 local 4225
Address: 29th Floor Jollibee Plaza Building, No. 10 F. Ortigas Jr. Road, Ortigas Center, Pasig City 1600